LONDON: Business confidence in the UK has hit a new low in December with a fall of 2 points to 39%. According to the Lloyds Bank Business Barometer, this is the lowest level recorded since the beginning of the year, although still above the long-run average of 29%. While this decline is partly attributed to firms’ own trading prospects, there is more positivity about the wider economy.
The Bank of England has forecast zero growth in gross domestic product for the final quarter of 2024, citing concerns over the impact of the new government’s budget on inflation. However, Lloyds’ gauge of price intentions has risen slightly in December and remains well above the long-run average.
A separate survey by online jobs website Adzuna suggests the labour market is recovering some of its momentum in the run-up to the Christmas holidays. Vacancies rose by 2.3% in November, driven in part by the logistics sector, while average salaries advertised on Adzuna last month rose by 6.5% year on year, the biggest increase since April 2021.
However, Andrew Hunter, co-founder of Adzuna, warned that employment trends are likely to reflect the impact of the budget and the slowdown in the economy. He noted that the job market currently appears very competitive, but this is likely to change in the coming months.
