Nation

UK business morale falls as concerns about cost pressures and economy persist, Lloyds says

By Reuters Reuters
FILE PHOTO: A visitor looks out from the viewing area of Garden at 120 with commercial skyscrapers including The Gherkin seen behind, in the City of London financial district, in London, Britain, September 23, 2025. REUTERS/Toby Melville/File Photo
FILE PHOTO: A visitor looks out from the viewing area of Garden at 120 with commercial skyscrapers including The Gherkin seen behind, in the City of London financial district, in London, Britain, September 23, 2025. REUTERS/Toby Melville/File Photo Toby Melville Reuters

LONDON - British businesses' confidence about the economic outlook fell this month although their assessment of their ‌own prospects was less downbeat, a survey by Lloyds showed on Tuesday.

"While cost pressures and global uncertainty continue to weigh on business confidence, international firms are much more confident with many seeing signs of supply chain disruption easing and strengthening customer demand," said Amanda Murphy, CEO for Lloyds Business and Commercial Banking.

The survey also showed:

• Businesses' overall confidence fell by 3 points ​to +44, below its 12-month average of +47

• The net balance in confidence about the wider ​economy fell ​by 4 points to +31, and lower than the 12-month average of +38

• Firms' optimism about their own trading outlook decreased by 2 points to +56, still close to its 12-month average of +57, with 64% of firms expecting stronger output in the coming year

• Confidence among manufacturing companies showed a 10-point fall ​to +33 in June, well below ⁠its 12-month average of +46

• Hiring intentions for the 12 months ahead rose for the first time in three months

• Lloyds' data was based on online polling ⁠by ​Ipsos of 1,200 businesses with ​annual sales of at least £250,000 ($330,275), conducted from June 1 to June 15

($1 = 0.7569 pounds)

(Reporting by Suban Abdulla; editing by David Milliken)

Copyright Reuters or USA Today Network via Reuters Connect.

This story was originally published June 29, 2026 at 9:29 PM.