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Businesses 'have mixed feelings' about the next 12 months
27/03/2007
There has been a reduction in business confidence in March but predictions for the UK's economy as a whole remain strong, according to Lloyds TSB.
The percentage of companies predicting higher individual activity over the next 12 months has decreased from 66 per cent to 56 per cent over the last month, the bank's business barometer reports.
Lloyds pinpoints the volatile stock market activity of recent weeks as a reason for businesses' caution in March.
In contrast, Lloyds indicates that the balance of firms which are more rather than less optimistic about the UK's economy increased by one point over the course of the month and is now 12 per cent above the survey average.
Trevor Williams, chief economist at Lloyds TSB Corporate Markets, said: "The unpredictable stock market performance this month has forced UK firms to take a sense check on their activity expectations for the coming year.
"This looks like it will be just a blip rather than a sustained trough in confidence because underlying UK economic conditions remain strong."
Last week's Budget could, however, further damage firms' individual confidence, he added.
The percentage of companies predicting higher individual activity over the next 12 months has decreased from 66 per cent to 56 per cent over the last month, the bank's business barometer reports.
Lloyds pinpoints the volatile stock market activity of recent weeks as a reason for businesses' caution in March.
In contrast, Lloyds indicates that the balance of firms which are more rather than less optimistic about the UK's economy increased by one point over the course of the month and is now 12 per cent above the survey average.
Trevor Williams, chief economist at Lloyds TSB Corporate Markets, said: "The unpredictable stock market performance this month has forced UK firms to take a sense check on their activity expectations for the coming year.
"This looks like it will be just a blip rather than a sustained trough in confidence because underlying UK economic conditions remain strong."
Last week's Budget could, however, further damage firms' individual confidence, he added.