LONDON, July 31 (Reuters) – British businesses turned more confident about the economic outlook earlier this month, reflecting a brief fall in energy prices after a ceasefire in the Iran war, a survey by Lloyds showed on Friday.
“July’s rise in confidence appears to reflect a more stable global backdrop. With lower energy prices and reduced uncertainty helping to lift firms’ view of the wider economy,” said Hann-Ju Ho, senior economist at Lloyds commercial banking.
“If global conditions become more uncertain again, sentiment could react, particularly where firms are still managing cost pressures and competitive conditions.”
• Firms’ overall confidence rose by 5 points to +49, above its 12-month average of +47 and the highest in four months
• The net balance in confidence about the wider economy leapt by 11 points to +42 with domestic firms reporting a 22-point increase in confidence to 25%, partly due to stronger demand
• A measure of companies’ optimism about their trading outlook was unchanged at +56
• Smaller businesses with turnover below £1 million ($1.34 million) reported a strong increase in sentiment
• Confidence among manufacturing companies showed a 14-point rise to +47 in July, above its 12-month average of +45
• Lloyds’ data was based on online polling by Ipsos of 1,200 businesses with annual sales of at least £250,000, conducted from July 1 to July 16.
($1 = 0.7473 pounds)
(Reporting by Suban AbdullaEditing by William Schomberg)
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