UK Business Sentiment Rises in May, Lloyds Survey Shows

UK Business Sentiment Rises in May, Lloyds Survey Shows

British business sentiment edged up in May and is now close to its level before the Iran war, according to a monthly survey by Lloyds Bank on Friday. This contrasts with most other measures of business and consumer sentiment.

Key Findings from the Survey

The business confidence index rose 3 points in May to +47, close to its 12-month average of +48 and above the long-run average of +30 since the survey began in 2002.

Businesses' confidence in their own trading outlook rose 4 points to +58, while confidence in the wider economy increased 2 points to +35.

Sectoral Changes

Confidence among construction firms showed a 15-point jump to +44 in May, close to its 12-month average. Retail improved 8 points to +53, services were unchanged at +45, and manufacturing fell 4 points to +43.

Negative Factors and Overall Outlook

Rising inflation and cost pressures, economic uncertainty, and weaker customer demand were the main negative factors cited. In contrast, previously released preliminary PMI data for UK businesses fell to the lowest in more than a year in May.

Lloyds' data was based on online polling by Ipsos of 1,200 companies with annual sales of at least £250,000, conducted from April 30 to May 18.