03 Jul 2025Business confidence rose in June building on a sharp rebound in May, according to Lloyds Bank's Business Barometer. Business confidence saw a modest increase in June, rising by 1 percentage point to 51%. Lloyds said that the uptick continues the positive momentum seen since April's decline during peak global trade tariff concerns. According to the Barometer, economic optimism reached a 10-month high, while trading prospects for the next year improved, hitting a three-month high, indicating a more favourable outlook for business activity. The sustained rise in confidence is likely influenced by signs of de-escalation in global trade tariff tensions, the bank added. Manufacturing and retail firms, which had lagged in the previous month, showed marked improvements in confidence, contributing to the overall positive sentiment. Hann-Ju Ho, Senior Economist at Lloyds Bank Corporate & Institutional Banking, said: 'Business confidence has continued its positive momentum, following the significant gains we saw in May. 'In particular, the sustained rise in hiring intentions suggests that while firms do still face challenges, they may be starting to look beyond short-term staffing needs and preparing for future growth.'