According to Lloyds Bank’s latest survey, UK business confidence declined in April, falling 10 points to 39%. While this marks a slowdown after a strong first quarter, sentiment remains higher than at the start of the year and above the 20-year average of 29%.
The shift was driven by a drop in economic optimism, which fell to 28%, the lowest level this year. Fewer businesses expect improvements in the broader economy, reflecting ongoing concerns over global trade dynamics and market volatility.
Trading outlooks remain relatively strong despite a seven-point dip to 50%. Confidence around hiring also edged slightly, but remains among the highest post-pandemic levels. Pay expectations eased modestly, though projections for larger wage increases are broadly unchanged from last year.
More firms plan to raise prices, with price expectations climbing seven points to 68%. The share of businesses expecting to cut prices held steady at 2%.
Sector performance was mixed. Construction saw the steepest confidence decline, down 22 points. Retail and services also slipped, while manufacturing held steady. Regionally, most areas saw flat or declining sentiment, though the North East and East of England bucked the trend with notable gains.
