UK business confidence hits 17-month low as Middle East tensions lift costs

British business confidence has plummeted to a 17-month low, according to a Lloyds survey, as Middle East tensions have driven up energy costs and raised concerns over inflation and the broader economy. The Lloyds Business Barometer fell 12 points to 41% in September, its lowest level since April 2025, although it remained above the survey's long-term average of 30%.

Economic optimism dropped 18 points to 31%, while pessimism rose to 21%, as businesses grappled with higher energy prices, rising costs, inflation, and global uncertainty.

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