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Business confidence falls in May

Confidence in the wider economy fell drastically last month, as businesses were shaken by the worsening situation in the Eurozone.

According to the Lloyds Bank Wholesale Banking and Markets Business Barometer, confidence fell to -21% from 26% last month, indicating that most respondents have a negative view of the economy.

Commenting on the figures, Trevor Williams, chief economist at Lloyds Bank wholesale banking and markets said: ““The renewed concern around the eurozone is clearly having an impact on businesses’ sentiment towards prospects for the UK economy and, to a lesser extent, to their own prospects.”

Businesses were also found to be feeling less confident about their own prospects, standing at 35% - down from 43% in April. However, this decline was less severe than their sentiments towards the broader economic outlook.

Data also indicates that there was a 0.2% growth in gross domestic product between April and June, but only once the impact of the Diamond Jubilee has been taken into account. This is likely to have reduced growth by 0.5%.

Biggest declines in confidence occurred in the North and Midlands, and in the retail and distribution sectors.

This was posted in Bdaily's Members' News section by Ruth Mitchell .