A new survey has shown that UK business confidence is on the up, with all 14 monitored sectors expecting positive output growth over the next 12 months.
The Lloyds Bank UK Sector Tracker also revealed that while employment trends may remain robust, businesses are experiencing strong wage pressures.
Jeavon Lolay, Head of Economics and Market Insight at Lloyds Bank Corporate & Institutional Banking, commented on the findings, “Hopes that inflation has peaked underpinned a broad-based recovery in business confidence in January.
“For the first time since last July, all 14 sectors monitored by the UK Sector Tracker anticipate positive output growth in the year ahead.
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Email Jaime“This cautions against an overly pessimistic view of the economic outlook, although the impact of sustained high inflation and past increases in interest rates will inevitably weaken demand over the coming quarters.
“Given the improving economy-wide expectations for output growth, employment trends may remain robust as businesses maintain staffing levels to capitalise on prospective opportunities.
“However, this could pose a problem for the Bank of England if it means that wage pressures and domestically generated inflation prove to be more persistent.”
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