Lloyds Bank Business Barometer measure of confidence jumped by 10 points in August to 41%, this is the highest since February 2022.
Lloyds Bank reported their hiring intentions are the strongest in 15 months and the share of businesses planning to increase staff wages was the highest since they started asking about pay in 2018, with 30% of firms predicting a 3% pay rise.
Hann-Ju Ho, senior economist at Lloyds Bank said, “The bounce in economic optimism this month is the stand-out point.
Our analysis shows that businesses felt relief that interest rates may be reaching their peak, alongside hopes that measures to tackle inflation are having an impact.
Sarah Austin, founder and Director of the www.britishbusinessexcellenceawards.co.uk, said, “The Lloyds Bank Business Barometer reflects the same positive conversations that we are seeing take place across the British Business Excellence Awards.
“Brands and company owners are saying that they are finally seeing the green shoots of recovery beginning to emerge across the business landscape.
“It is clear though, that the UK business economy is still on a knife-edge and unless those green shoots of recovery are carefully nurtured, they could quickly get blown away by the winds of inflation and the danger of fuel price rises that are starting to creep back in.
The Treasury, Bank of England and Downing St need to work collectively to ensure we continue this return to optimism about the future.