The majority of businesses are confident about the British economy, and most expect an increase in trade over the next 12 months, a new survey reveals.
The research, conducted by Lloyds TSB Corporate Markets, found that more than two-thirds of businesses anticipate an increase in business activity over the next year, up from 63% in March.
What’s more, some 30% of firms expect activity levels to remain constant and just 2% are facing a decline.
The Lloyds TSB ‘Business Barometer’ also found that optimism among British companies about the state of the general economy also rose sharply in April.
According to Lloyds TSB, the balance of firms feeling optimistic rather than pessimistic about the UK economy rose by 12 percentage points, to +41, in April compared to March.
The increased level of confidence, which is more than double the survey’s five-year average of +18, is fuelling the increased expectation of trading activity this year, Lloyds TSB claimed.
“This leap in confidence suggests a robust April and the numbers imply that this rate of healthy economic growth will persist,” said Trevor Williams, chief economist at Lloyds TSB Corporate Markets.
He added: “Stronger demand growth has allowed firms to increase prices and investment spend is now outstripping consumer spending.”
“The sentiment of firms reported in this month’s survey indicates that economic expansion will be sustained at near three per cent pace.”
© Crimson Business Ltd. 2007
