Source: Sharecast
The Lloyds Business Barometer for August rose two points to 54%, marking the fourth monthly increase in a row.
Confidence in trading prospects among UK businesses gained five points to 63%, its highest level since 2014, with wage growth expectations and hiring intentions both on the rise.
Some 83% of firms said that higher employment-related costs would have a limited impact on hiring plans, with 62% expecting to hire more staff over the next 12 months.
On the downside, firms' optimism about the UK economic fell three points to 44%, falling for the first time since April. Nevertheless, this was still about the long-term average of 19%.
"This continued upward trend in business confidence suggests UK firms remain optimistic about their own trading prospects while there is a modest cooling of confidence in the wider UK economy. Firms are focusing on what they can control, with many looking to pursue growth opportunities, including entering new markets and adopting new technologies," said Hann-Ju Ho, senior economist at Lloyds Bank Commercial Banking.
“Wage expectations have seen a notable shift this month, but it remains to be seen whether this signals the start of a sustained trend or a temporary uplift, as they have been broadly stable in recent months."
