Decline in British Business Confidence Hits 2024 Low

December 23, 2024 - 05:37

British business confidence has reached its lowest point of 2024 as of December, according to a recent survey. Despite this decline, employers expressed a slightly more positive outlook regarding the overall economy. The Lloyds Bank Business Barometer indicated a decrease of 2 points in confidence levels, bringing the figure to 39%. Notably, this figure remains above the long-term average of 29%, suggesting that while sentiment has dipped, it is not unprecedented.

Hann-Ju Ho, a senior economist at Lloyds Bank Commercial Banking, highlighted that this decline in confidence has been a gradual trend since the summer months. However, the economic landscape is not entirely bleak. Separate data revealed a surge in hiring and wage growth in the lead-up to the Christmas season, indicating that businesses are still actively seeking talent and willing to invest in their workforce. This combination of declining confidence alongside robust pay growth presents a complex picture for the UK economy as it moves into the new year.