According to a survey by Lloyds Bank, British businesses are more optimistic about the economy than they have been in almost a year, indicating a positive momentum in Britain's economy in
the second quarter.
The survey showed that the Business Barometer gauge of confidence increased to 33% in April from 32% in March, and firms' optimism about the wider economy improved by five points to 28%. Additionally, wage growth reached a seven-month high, and hiring intentions improved for the fifth month in a row, with the net balance at 27%, the highest level since June last year. However, more than half of the companies surveyed by Lloyds plan to raise their prices in the next 12 months, which could add to inflationary pressures.
The Bank of England has already raised interest rates 11 times since December 2021 and is expected to announce a further 25 basis-point increase on May 11, in an attempt to combat double-digit inflation. Photo by Stephen Richards, Wikimedia commons.