Confidence and trading outlook
Overall business confidence rose six points to 47% in October, remaining above the long-term average of 30%, according to the latest Lloyds Business Barometer. Economic optimism increased nine points to 40%, while firms' own trading outlook climbed five points to 55%, supported by stronger customer demand. Nearly two-thirds of surveyed businesses, or 63%, expect an increase in activity over the coming year.
Sector and regional divergence
The services sector recorded a 17-point increase in confidence to 52%, and manufacturing rose 12 points to 48%. By contrast, retail fell 12 points to 39% and construction dipped two points to 45%, with both sectors citing rising cost pressures, global uncertainty and inflation. Regionally, confidence improved across nine of the UK's 12 regions and nations, led by the East of England at 63% and Wales, which saw a 38-point rebound to 54%.