Lloyds Banking Group PLC (LSE:LLOY)'s latest health check of the business world shows confidence at an 18-month high.
The Lloyds Bank Business Barometer for August said business confidence rose by 10 percentage points to 41% in August to reach the highest level since February 2022 (44%), just prior to Russia’s invasion of Ukraine.
The 10-point increase is the largest month-on-month rise since March 2023.
Business sentiment was largely driven by a more upbeat view of the wider economy, after the latest rise in base rates of 25 basis points was lower than the 50-basis-points increase some firms had been expecting.
This led to an overall 15-point rise in economic optimism to 36%.
However, the rise in economic optimism was not consistent among those surveyed last month, with smaller businesses and mid-sized firms more optimistic than larger companies.
Companies' hiring intentions rose to a 15-month high and pricing expectations increased in August, with the net balance up three points to 56%.