Latest News

UK employers suffer confidence shock in March – Lloyds

© Reuters. FILE PHOTO: General view of signage at a branch of Lloyds bank, in London, Britain October 31, 2021. REUTERS/Tom Nicholson

LONDON (Reuters) – Confidence levels among British employers have fallen sharply because of the rise in inflation and the war in Ukraine, according to a survey which also showed more firms expected to increase their prices and staff pay.

The monthly survey by Lloyds (LON:LLOY) Bank published on Thursday showed business confidence fell by 11 points to 33% this month, the biggest month-on-month drop since the start of the COVID-19 pandemic and returning to levels last seen in August 2021.

The share of firms expecting to increase prices in response to the rise in inflation rose three points to 55%.

Hiring expectations fell by seven points but remained strong at 31% and a record 49% of firms expected average pay growth of at least 2% in the next 12 months, an increase of 32 points since March 2021.

The Bank of England is concerned that a surge in inflation to a 30-year high of 6.2% may turn into stubbornly high price growth if it leads to bigger pay demands and widespread price rises for other goods.

The BoE has raised its main interest rate at each of its past three monetary policy meetings and investors expect another increase to 1.0% in May.

The Lloyds survey of 1,200 firms was conducted March 1-15.

UK employers suffer confidence shock in March – Lloyds

Disclaimer:Fusion Mediawould like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

What's your reaction?

In Love
Not Sure

You may also like

More in:Latest News

Leave a reply

Your email address will not be published. Required fields are marked *