LONDON — British companies recorded their lowest confidence levels in 17 months during September, according to a survey released by Lloyds Bank, with executives citing elevated global energy prices and heightened uncertainty from the Iran war.
The Lloyds Bank monthly business confidence index dropped 12 points in September to +41 percent, below its 12-month average of +47 percent.
Hann-Ju Ho, senior economist at Lloyds Commercial Banking, said the decline was driven by a significant fall in economic optimism as businesses responded to higher energy costs and global uncertainty.
Optimism regarding the wider economy fell 18 points to +31 percent, six points below its 12-month average. Firms' trading outlook declined 8 points to +50 percent, compared with a 12-month average of +56 percent.
The survey also found a slight increase in the percentage of firms planning to raise prices over the next 12 months, suggesting businesses anticipate continued cost pressures.
The Lloyds data was compiled from an Ipsos survey conducted Sept. 2-16 among 1,200 British businesses with annual sales of at least £250,000.
