LONDON, March 31 (Reuters) - British businesses were
their most confident this month since May 2022 and pricing
expectations, which are being watched by the Bank of England as
it grapples with high inflation, cooled to a six-month low, a
survey showed on Friday.
The Lloyds Bank Business Barometer rose in March by 11
points to 32%, helped by rising optimism about the outlook for
the economy.
The survey added to other signs that have suggested Britain
could sidestep a recession that many forecasters previously
thought was highly likely.
Wage expectations - which are also watched closely by the
BoE - strengthened slightly in March but Lloyds said it detected
tentative signals that they had peaked from last year's highs.
"Business confidence has seen a surge this month with
economic optimism and trading prospects bolstering firms," said
Hann-Ju Ho, senior economist at Lloyds Bank Commercial Banking.
"With hiring intentions improving, we may see employment
growth picking up in the coming months. Tentative signs of
easing wage pressures suggest that businesses' difficulties in
finding staff may have started to ease."
The
S&P Global/CIPS surveys of businesses
published last week showed Britain's private sector
expanded in March, although more slowly than in February.
The BoE said earlier this month that it expects Britain's
economy to expand slightly in the second quarter, an upgrade
from its forecast in February for a 0.4% drop. It left its
forecast of a 0.1% decline in the first quarter unchanged.
(Reporting by Andy Bruce
Editing by William Schomberg)
Messaging: @brucereuters))
