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UK business confidence down: Lloyds

UK business confidence down: Lloyds

(1 September 2016 – United Kingdom) UK business confidence slipped last month (August) following the decision to exit the European Union, Lloyds Bank business barometer showed.

According to the bank, confidence levels have decreased by 13 points to 16 percent for the month.

While the level is low, it is said to be still better than the 6 percent confidence reading noted by the bank in the days following the Brexit vote.

Lloyds Bank said the net balance of firms reporting an improvement in economic prospects, declined 22 points to 19 percent. While this was a sharp drop from a month prior of 41 percent, it also marked the lowest level since December 2011.

Lloyds found that around 33 percent of the firms surveyed expected to increase hiring in 2017. This was not only better than July's 32 percent reading but also the highest level noted in five months.

"Our August survey shows a fall in overall confidence, although it remains above the low in June. It is consistent with a slowdown in UK growth prospects in the second half of the year and may reflect a growing expectation for some that a more challenging economic outlook will have a negative impact on their own company prospects. Despite this, hiring plans continue to indicate resilience," Hann-Ju Ho, a senior economist for Lloyds Bank Commercial Banking said.

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