UK Business Confidence Falls to 17-Month Low

Lloyds’ September Business Barometer showed UK business confidence falling 12 points to 41%, its lowest level since April 2025, as renewed Middle East tensions, higher energy costs, inflation and economic uncertainty weakened sentiment. Confidence in the wider economy dropped 18 points to 31%, while firms’ assessment of their own trading outlook fell eight points to 50%; smaller businesses saw particular declines, though most companies still expected activity to grow. Regional results varied: London confidence fell 15 points to 46%, driven by economic pessimism even as firms’ trading outlook held at 60%, while East of England confidence declined eight points to 36%. Wales recorded a particularly steep drop, with headline confidence falling 38 points to 16%, although firms cited demand and continued plans for training, new markets and product development as reasons for optimism. Across the regions, businesses continued to identify investment in staff, expansion into new markets and developing products or services as priorities despite the more challenging outlook.