UK business confidence hits five-month high, Lloyds survey shows

28th Aug 2026 08:52

(Sharecast News) - UK business confidence rose to its highest level since March in August, driven by stronger customer demand and improving economic optimism, according to the latest Lloyds Business Barometer.

Overall confidence increased four points to 53%, marking a second consecutive monthly rise and standing above the 12-month average of 47%.

Economic optimism jumped seven points to 49%, while firms' own trading outlook improved two points to a three-month high of 58%.

Lloyds said stronger customer demand and improving financial conditions were among the main reasons for the more positive outlook. Confidence among domestic-focused firms rose 10 points to 44%, while international businesses remained more upbeat at 59%.

Price expectations also eased, with the proportion of firms expecting to raise prices over the next 12 months falling three points to 51%, the lowest level since 2022.

Services confidence rose to a 13-month high of 56%, while manufacturing sentiment climbed eight points to 55%.

"It's encouraging to see business confidence rise for the second month in a row," said Amanda Murphy, chief executive of Lloyds Business and Commercial Banking.

"While businesses continue to operate in a challenging environment, easing cost pressures and fewer firms expecting to raise prices in the coming year should allow them to focus less on managing headwinds and more on pursuing growth."