momentumbusiness in britain report summary: tracking confidence trends

Business in Britain is a twice-yearly report produced by Lloyds Bank. Now in its 22nd year, it canvasses the views of 1,500 UK businesses. The confidence index is based on the average of the net balances

of expected sales, orders and profits over the next six months.

BUsiNess iN BriTaiN

Business confidence hits 22-year high

60

50

40

30

20

10

0

-10

-20

-30

-40

19931994

19961997

19992000

20022003

20052006

20082009

20112012

2014

Index

Average

Conf

iden

ce in

dex (

%)

The confidence index increased 8 points to 53%,

surpassing the previous survey high recorded in January 1994.

53%

Net balances show the percentage of those responding positively minus those responding negatively.

a confident outlook

expectations for the next six months stand at record highs.

saLes profiTsorders

58% 56%46%

The three key indicators of confidence:

saLes

orders

profiTs

Net balances show the percentage of those expecting an increase minus the percentage of those expecting a decrease in the next six months.

Confidence has improved across all UK regions

57% – NorTh easT & yorKshire

57% – easT midLaNds & easT

56% – soUTh easT

51% – LoNdoN

53% – sCoTLaNd

45% – NorTh wesT

54% – wesT midLaNds

48% –waLes

58% – soUTh wesT

The confidence index is based on the average of the net balances of expected sales, orders and profits over the next six months.

Confidence is at its highest level across all sectors

70

60

50

40

30

20

10

0

Previous survey: Jan 2014 Latest survey: June 2014

% n

et b

alan

ce

Manufacturing

Constructio

n

Retail &

Wholesale

Hospitality

&

LeisureTransport &

Comms.

Business & Oth.

Serv.Total

CoNsTrUCTioN

BUsiNess & oTher serviCes

TraNsporT & CommUNiCaTioNs

19

0911

point increase

point increase

point increase

Net balances show the percentage of those responding positively minus those responding negatively.

This upturn in confidence marks an all-time survey high. we hope that it will lead to a further improvement in economic activity for the second half of 2014 to allow British businesses to grow and prosper.

Tim hinton, managing director, sme and mid markets Banking, Lloyds Banking Group

Net balances show the percentage of those expecting an increase minus the percentage of those expecting a decrease over the next six months.

UK companies are most confident about expected sales to:

eUrope

Us & CaNada asia

middLe easT

afriCaLaTiN ameriCa

37%26% 22%

16%

12%11%

exports

Net balances show the percentage of those responding positively minus those responding negatively.

investment and recruitment

report challenges in the recruitment of skilled workers.

Net balance of businesses expected to boost staff

numbers over the coming six months.

22% Net balance of businesses

planning to upscale investment in the

second half of 2014.

22% 36%

This communication is provided for information purposes only and is not to be construed as investment, legal, tax or accounting advice nor should it be treated as an offer or solicitation to offer, to buy or sell any product or to enter into any transaction. whilst Lloyds Bank plc (“Lloyds Bank”), has exercised reasonable care in preparing this material and any views or information expressed or presented are based on sources it believes to be accurate and reliable, no representation or warranty, express or implied, is made as to the accuracy, reliability or completeness of the facts and

data contained herein. accordingly, Lloyds Bank, its directors, officers and employees are not responsible for any consequences arising from any reliance upon such information. you should be aware that any views and opinions expressed herein are subject to change without notice, and are not necessarily those of Lloyds Bank.

Lloyds Bank is a trading name of Lloyds Bank plc. Lloyds Bank plc’s registered office is at 25 Gresham street, London eC2v 7hN and it is registered in england and wales under no. 2065. Lloyds Bank plc is authorised by the prudential regulation authority and regulated by the financial Conduct authority and the prudential regulation authority under registration number 119278.

Please contact us if you’d like this information in an alternative format such as Braille, large print or audio.

Download the full Business in Britain report here

more iNsiGhT To GeT yoU iNspired, iNformed aNd iNvoLved aT GamepLaN

lloydsbank.com/gameplan