The British business changed to be more pessimistic in January, expanding the reach of the company’s trust that fell to five months, but there are some more hopeful views about trade prospects for the coming year, according to a survey published on Friday.
In the latest signs of gloom among businesses affected by the announcement of a tax increase of 25 billion pounds ($ 31 billion) in October, the Lloyds Bank business barometer dropped two points to 37%, the lowest in a year.
Minister of Finance Rachel Reeves searched this week to elevate business morale by confirming his support for the expansion of Heathrow Airport in London and other development projects.
The Lloyds-survey which has been running since 2002-Ets above the long-term average of 29%, but has been dragged down for four of the last five months by business superior optimism about the economy.
“Changes in trust can sometimes be sudden and sharp, but what we have seen recently is a more gradual and measurable decline,” Hann-Ju Ho, senior economist at Lloyds Bank Commercial Banking, said.
However, the increase in the survey size of the prospect of trade advised companies to be more confident about their ability to overcome economic slowdown, he added.
The survey includes details that are likely to be recorded by the Bank of England which is expected to cut interest rates next week for signs of losing momentum in the economy.
The recruitment plan gauge is slightly weakened to the lowest since June last year and the part of the company that plans to increase their price is the lowest in five months.
This survey is based on a response from 1,200 companies between January 3 and January 17.
Source: Reuters
