Business Confidence Among British Companies on the Decline

The escalating coronavirus crisis has already made a significant impact on business confidence among British companies. Business confidence

Business Confidence Among British Companies on the Decline

The escalating coronavirus crisis has already made a significant impact on business confidence among British companies. Lloyds Bank’s business confidence index has declined to -3% during the week of March 9, the lowest reading since the 2009 financial crisis.

In the first half of March, business confidence fell to 6%, a decline by 17 points, while hiring intentions declined 12 points to 4%. Over 70% of businesses indicated that they have already started or were about to start experiencing the impacts of the coronavirus outbreak.

GfK consumer confidence also fell from -7 to -9 for the month of March. The previous reading had been the highest level for this index since August 2018, on account of reigning Brexit related uncertainties.

Although the British government and the BOE have announced several emergency stimulus measures since then to offset weakness in the economy, the worsening crisis surrounding the virus is expected to further deteriorate business confidence and even keep consumer spending in check in the near future.

ABOUT THE AUTHOR See More
Arslan Butt
Index & Commodity Analyst
Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics.His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker.His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.

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