According to a recent survey, business confidence in the United Kingdom has reached its best level in four years.
BUSINESS CONFIDENCE IN THE UK HAS RAISED TO HIGH LEVELS AS THE ECONOMY REcovers from the pandemic.
This level of business optimism has not been seen in the UK since April 2017. Employers in the North West and East of England showed the greatest gain in confidence, according to the Lloyds Bank Business Barometer.
Overall company confidence in the UK climbed by six points to +36 percent in August, according to the survey.
The increase can be explained by expectations of better growth in the coming year.
According to the study, the proportion of businesses expecting increased business activity in the coming year has increased by seven percentage points to 48 percent.
The services sector experienced the largest monthly increase in confidence, climbing to 36%.
However, inflation remains a source of concern.
“It is apparent that there is still some level of concern about inflation and the impact of price pressures,” said Gareth Oakley, managing director for business banking at Lloyds.
“The last months of the year will be critical for the UK’s economic growth.”
Every month, the survey is done, with the most recent one taking place between August 2 and August 16.
The introduction of vaccines, changes to self-isolation guidelines, and the lifting of lockdown limitations all contributed to a boost in business confidence in August.
The International Monetary Fund (IMF) forecasted 5.3 percent growth for the United Kingdom in July.
“There are promising signals that our economy is returning faster than initially expected,” said Chancellor Rishi Sunak, “with the IMF predicting the UK to have the joint highest growth rate among the G7 economies in 2021.”
“We still have problems as a result of the pandemic’s impact,” Mr Sunak continued, “which is why we remain focused on safeguarding and generating as many employment as possible through our Plan for Jobs.”
The UK was the hardest hit of the G7 nations in 2020, with output falling 9.8%.