Business confidence cools, but hiring intentions are still strong

Although UK business confidence has seen a slight dip, it still remains above the long-term average with nearly half expecting to increase employment.

Data from the latest Lloyds Bank Business Barometer shows that hiring intentions fell seven points to 30% (the lowest since the end of the furlough scheme), however, recruitment remains positive with 48% of firms looking to increase staffing levels over the next year.

Pay growth expectations also grew in November as firms look to either retain or attract enough employees.

Hann-Ju Ho, Senior Economist Lloyds Bank Commercial Banking, commented, “Business confidence remains robust above the long-term average, but it dipped this month as economic optimism and trading prospects were affected by the persistence of rising costs and supply chain issues.

“Pay expectations remain elevated with a quarter of businesses anticipating rises of 3% or more in the next 12 months which will add to business costs, but it bodes well for staff facing into economic challenges.”

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