Lloyds Business Barometer finds sustained rise in business confidence

A monthly business survey conducted by high street banking group, Lloyds, has revealed a sustained rise in business confidence across the UK.

Business confidence increased by 1 point to 51% in June nationwide, with the North-west seeing a 3 point rise to 55%. The rise follows a sharper rise in business confidence in May, and puts economic optimism at a 10-month high.

Lloyds’ analysts attributed the sustained rise in confidence to signs of de-escalation in global trade tariff tensions. Most responses were given before the recent shifts in Middle East tensions. Manufacturing and retail firms, which had lagged in the previous month, showed marked improvements in confidence, contributing to the overall positive sentiment. The Spending Review may also have played a role in shaping business expectations.

Commenting on the findings, Hann-Ju Ho, Senior Economist at Lloyds Bank Corporate & Institutional Banking, said:

“Business confidence has continued its positive momentum, following the significant
gains we saw in May.

“In particular, the sustained rise in hiring intentions suggests that while firms do still face challenges, they may be starting to look beyond short-term staffing needs and preparing for future growth.“

Lloyds findings, which are based on responses of 1,200 companies given in June 2025, follow more local research in Greater Manchester by the Chamber of Commerce. Its most recent quarterly survey, which was conducted prior to Lloyds Business Barometer survey, highlighted business’ concerns around the global economic picture, particularly among manufacturers, as well as lower vacancies and the impact on hiring intentions from the recent National Insurance rise.