UK business morale hits 17-month low, Lloyds says

FILE PHOTO: A person shields themself from the sun as they walk across Waterloo Bridge, with the City of London financial district in the background in London, Britain, August 13, 2026. REUTERS/Isabel Infantes/File Photo · Reuters

LONDON, Sept 30 (Reuters) – British firms turned the least confident since April 2025 in September, ‌according to a Lloyds survey on Wednesday ‌that also showed executives’ view of the global economic outlook darkened ​as the Iran war pushes up costs.

“September’s fall in business confidence was driven primarily by a significant decline in economic optimism, with businesses responding to a ‌combination of higher ⁠global energy prices and increased global uncertainty,” Hann-Ju Ho, senior economist at Lloyds Commercial ⁠Banking, said.

“(The) trading outlook also fell, suggesting that firms are becoming more cautious about the outlook for ​demand and ​activity over the coming ​year.”

• The Lloyds Bank ‌monthly business confidence index declined by 12 points in September to +41%, below its average of +47% over the past 12 months

• Optimism about the wider economy dropped 18 points to +31%, six points below its 12-month ‌average of +37%

• Firms’ own trading ​outlook fell 8 points to +50%, ​below its 12-month ​average of +56%

• The percentage of firms ‌planning to raise prices in ​the next 12 ​months rose slightly

• Lloyds data was based on an Ipsos survey, conducted between September 2 ​and September 16, ‌of 1,200 British businesses with annual sales ​of at least £250,000 ($331,400)

($1 = 0.7544 pounds)

(Reporting by Suban Abdulla; ​editing by David Milliken)

Source: https://finance.yahoo.com/economy/articles/uk-business-morale-hits-17-230250387.html