Confidence among British businesses has surged to its highest level in nine years, according to Lloyds Bank. Its latest Business Barometer shows optimism rose by one point in June to 51%

—the strongest reading since November 2015.

This follows a sharp 11-point jump in May, rebounding from April’s decline, which was triggered by then-U.S. President Donald Trump’s tariff hike announcement—many of those tariffs have since been suspended.

Economic optimism also reached a 10-month high in June, with another one-point increase after a substantial 16-point rise the previous month.

Lloyds Bank senior economist Hann-Ju Ho noted a growing confidence among employers, citing that 60% of firms now expect to increase staffing over the next year—signaling preparation for future growth.

The Bank of England is keeping a close eye on employment trends as it assesses inflation pressures. Governor Andrew Bailey recently mentioned signs of a cooling job market, partly driven by April’s employer tax hike.

However, Lloyds data also shows rising wage expectations. For the second consecutive month, more firms (36%) expect average pay increases of at least 3%.

Meanwhile, job search platform Adzuna reported that UK vacancies dipped slightly in May from April but were up 0.5% year-on-year—the third consecutive monthly increase after a long period of decline.

“May gave more evidence that the UK job market is slowly stabilizing,” said Adzuna co-founder Andrew Hunter.

Despite the uptick in confidence, the Confederation of British Industry (CBI) remains cautious. Its survey showed business expectations for the coming quarter were still weak, though less negative than in May. High employment costs, restrained consumer spending, and ongoing global uncertainty continue to weigh on sentiment.

“Businesses are still navigating higher hiring costs, cautious households, and geopolitical instability,” said CBI deputy chief economist Alpesh Paleja. Photo by Pit-yacker, Wikimedia commons.