UK business optimism declined in September, according to Lloyds Bank

According to a survey released on Friday, business confidence in Britain fell in September as expectations for the economy dimmed, adding to other indications that the economy is slowing down.

From an 18-month high of 41% in August, the Lloyds Bank’s Business Barometer, which polls over 1,200 businesses throughout the economy, dropped to 36%.

The decrease in the Lloyds barometer, while less depressing than other measures such the S&P Global PMI, was consistent with previous indications of a slowing economy, which the Bank of England emphasized when it kept the rate of interest on hold last week.
The BoE’s decision, made after the poll was done, according to Hann-Ju Ho, principal analyst at Lloyds Bank Corporate Banking, may support confidence among companies in the upcoming months.

The recent move by the Bank of England “is expected to help companies feel more optimistic regarding the future,” he said. “While the economic climate remains unpredictable with price and interest rate concerns playing their part,” he added.
The Bureau for National Statistics is scheduled to release full growth figures for the second quarter at 6:00 GMT, which will provide additional information about the most recent state of the British economy.

While hiring intentions dropped in September, according to Lloyds, its measure of pricing expectations edged up. The percentage of businesses planning pay increases also decreased, albeit it was close to the norm for the year.