UK business morale hits 17-month low as Iran war costs darken outlook, Lloyds says
British business confidence fell to its lowest since April 2025 in September, a Lloyds survey showed, as the Iran war pushed up global energy prices and deepened uncertainty.
British firms turned their least confident since April 2025 in September, a Lloyds survey showed on Wednesday, as executives grew gloomier about the global economy while the Iran war pushed up costs, Reuters reported.
The Lloyds Bank monthly business confidence index fell 12 points in September to +41 percent, below its 12-month average of +47 percent. Optimism about the wider economy dropped 18 points to +31 percent, six points below the 12-month average of +37 percent.
“September’s fall in business confidence was driven primarily by a significant decline in economic optimism, with businesses responding to a combination of higher global energy prices and increased global uncertainty,” said Hann-Ju Ho, senior economist at Lloyds Commercial Banking.
Firms’ own trading outlook also fell, by 8 points to +50 percent, below its 12-month average of +56 percent. “(The) trading outlook also fell, suggesting that firms are becoming more cautious about the outlook for demand and activity over the coming year,” Ho said. The share of firms planning to raise prices in the next 12 months rose slightly.
The figures were based on an Ipsos survey of 1,200 British businesses with annual sales of at least £250,000, conducted between September 2 and September 16.
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