British Employers’ Confidence Hits Nine-Year High Amid Optimism for Economy
LONDON (Reuters) – Confidence levels among British employers reached a new nine-year high this month as companies expressed increasing optimism about the economic outlook, according to a recent survey released on Monday.
The Lloyds Bank Business Barometer climbed by one point to 51%, marking the highest level since November 2015. This uptick follows an 11-point surge in May, which came after a dip in April triggered by U.S. President Donald Trump’s announcement of significant import tariff hikes, many of which have now been put on hold.
The survey’s gauge of economic optimism soared to a 10-month peak, rising by one point following a substantial 16-point jump in May.
Hann-Ju Ho, senior economist at Lloyds Bank Commercial Banking, noted a rise in hiring intentions, with 60% of firms anticipating an increase in staffing levels in the upcoming year, indicating preparations for future growth.
The Bank of England is closely monitoring the UK’s job market to assess remaining inflationary pressures in the economy. Governor Andrew Bailey recently highlighted signs of a labor market slowdown, partly attributed to the government’s employer tax hike implemented in April.
Despite this, the Lloyds survey revealed a second consecutive monthly increase in wage growth expectations, with 36% of respondents anticipating average pay raises of 3% or higher.
In related data, figures from jobs website Adzuna indicated a slight decline in UK staff vacancies in May compared to April, yet a 0.5% year-on-year increase, marking the third consecutive rise after over a year of declines.
Andrew Hunter, co-founder of Adzuna, commented, “May reinforced the sense that the job market in the UK is gradually regaining its footing.”
On the other hand, the Confederation of British Industry (CBI) reported that businesses’ expectations regarding the economy in the next three months were less pessimistic than in May, yet remained subdued following the employer tax hike and global uncertainties.
Alpesh Paleja, deputy chief economist at the CBI, remarked, “Companies continue to grapple with rising employment costs, cautious consumer spending, and escalating global uncertainty.”
The positive trends in employer confidence and economic outlook suggest a hopeful trajectory for the UK’s job market and overall business landscape in the coming months.
(Written by William Schomberg; Edited by Helen Popper)
