British businesses grew more confident in August than at any point since March, according to a survey from Lloyds bank. The bank's monthly business confidence index rose 4 points to +53%, comfortably above its 12-month average of +47%. The improvement adds to a broader run of data pointing to a firming UK growth backdrop.
Optimism about the wider UK economy climbed 7 points to +49%, well ahead of its 12-month average of +37%. Confidence in firms' own trading outlook rose 2 points to +58%, slightly above its 12-month average of +56%. Lloyds said the gains reflected stronger customer demand and greater optimism about the economy, factors that should help support investment and growth plans going forward.
The most notable detail concerned pricing intentions. The percentage of firms planning to raise prices over the next 12 months fell 3 percentage points to 51%, its lowest level since 2022. That decline suggests businesses are seeing less need to pass through cost pressures to customers, even as confidence in demand and trading conditions improves, a combination typically viewed favourably from an inflation perspective.
Taken together, the August reading extends a period of improving sentiment among UK businesses and aligns with other recent indicators suggesting the broader economy is on a firmer footing. Rising confidence alongside cooling price rise intentions offers a relatively encouraging signal for policymakers weighing the balance between supporting growth and managing inflationary pressure, with businesses appearing more assured about the demand environment without needing to lean as heavily on price increases to protect margins.
