Business confidence growing despite political uncertainty

BUSINESSES are remaining confident about their own prospects and the economy, despite the looming General Election and Brexit.

The latest Lloyds Bank Commercial Banking Business Barometer found overall confidence for the third consecutive month in November, with a net balance of nine per cent, while economic optimism increased to seven per cent – the highest level since January.

Additionally, concerns about the UK leaving the European Union eased this month as the barometer showed a two point increase to minus 16 per cent, the least negative since January.

The barometer measures the responses from surveyed companies and generates an average based on size, sector and region, which is then turned into a percentage balance.

“The third consecutive increase in overall business confidence is positive for the UK as economic optimism reaches the highest level since January,” Hann-Ju Ho, senior economist for Lloyds Bank Commercial Banking, said:

“Moreover, concerns about the impact of the UK leaving the EU continued to ease slightly and hiring intentions have stabilised as we move towards the end of the year and look ahead to 2020.”

Read more: P2P could be better match for small businesses, says FSB

Read more: SMEs unaware of the risk of personal guarantees for business loans

Alternative provider Nucleus Commercial Finance said it was good businesses remain resilient.

“As many businesses ramp up their efforts in preparation for the busy holiday season, this confidence and optimism will be key to a successful end to the year,” Chirag Shah, chief executive of Nucleus Commercial Finance, said.

“For these businesses, alternative finance can form part of the solution to ensure there aren’t any gaps during this busy period. Whether it be to increase stock or headcount, businesses owners should look to this type of funding to capitalise on the festive spirit.”

Read more: Nucleus launches new cash flow product