Canada Markets open in 4 hrs 37 mins
  • S&P/TSX

    20,544.11
    -51.78 (-0.25%)
     
  • S&P 500

    4,326.51
    -23.42 (-0.54%)
     
  • DOW

    34,160.78
    -7.31 (-0.02%)
     
  • CAD/USD

    0.7829
    -0.0023 (-0.2897%)
     
  • CRUDE OIL

    87.01
    +0.40 (+0.46%)
     
  • BTC-CAD

    46,734.83
    -253.70 (-0.54%)
     
  • CMC Crypto 200

    828.99
    +9.49 (+1.16%)
     
  • GOLD FUTURES

    1,793.00
    -2.00 (-0.11%)
     
  • RUSSELL 2000

    1,931.29
    -45.18 (-2.29%)
     
  • 10-Yr Bond

    1.8070
    0.0000 (0.00%)
     
  • NASDAQ futures

    14,084.50
    +97.75 (+0.70%)
     
  • VOLATILITY

    30.49
    -1.47 (-4.60%)
     
  • FTSE

    7,482.66
    -71.65 (-0.95%)
     
  • NIKKEI 225

    26,717.34
    +547.04 (+2.09%)
     
  • CAD/EUR

    0.7028
    -0.0014 (-0.20%)
     

Half of UK businesses plan to raise prices

  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
·3 min read
In this article:
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • LLDTF
  • LYG
  • GBPUSD=X
  • USD=X
  • GBP=X
  • ^FTSE
UK business confidence robust but price hikes expected
Some 52% of firms expect stronger trading prospects in the next 12 months. Photo: Belinda Jiao/SOPA Images/Sipa USA

Business confidence wavered for a second month in November, as winter took hold and companies fretted about surging COVID cases. Despite the retreat, it was, however, above the long-term average. 

The net balance for firms’ own trading prospects in the year ahead was down three points to 39%, according to the Lloyds Business Barometer (LLOY.L). 

The barometer found that 52% of firms expect stronger trading prospects in the next 12 months, while 13% — up one from 12% — are anticipating weaker business activity. 

Economic optimism also dropped marginally to 41% — down two from 43%.

Watch: What is inflation and why is it important?

Meanwhile, half of businesses expect to raise the price of their goods — up one from 49% and a record high.

Read more: Cyber Monday and Black Friday sales drive shoppers to malls as UK high street suffers

Nine of the 12 UK regions and nations registered a decrease in business confidence in November. However, Wales saw a 14 point increase to 37% and the South East was up 13 points to 34%, experiencing significant increases in confidence. The East of England also registered an improvement of five points to 38%.

The solid performance of financial & business services, the broader economic reopening and gradual return to offices meant that London, which was down two points to 63%, remained the strongest region.

Northern Ireland (down 26 points to -5%), the North East (down 16 points to 45%), the South West (down 14 points 34%) and the East Midlands (down 13 points to 42%) all saw double digit declines in confidence.

Yorkshire and the Humber (down nine points to 31%), the West Midlands (down eight points to 42%), the North West (down eight points 34%) and Scotland (down four points to 27%) were the other regions that also saw dips. 

Hiring intentions tempered in November, falling seven points to 30%, the lowest since the end of the furlough scheme. 

However, overall recruitment activity remained positive with nearly half of firms (down three to 48%) planning to increase staffing levels over the next 12 months, Lloyds said. 

Pay growth expectations showed continued strength in November as businesses looked at ways of retaining or attracting staff. A quarter of firms expected a 3% or more average wage growth and 9% of businesses anticipated a pay freeze — both unchanged from October.

Read more: UK consumer credit surges to £700m in October

At a sector level, confidence slipped in manufacturing (42%), to its lowest since August, linked to the persistence of supply-chain disruptions, while it fell to a seven-month low of 28% in construction.

In contrast, the retail sector (45%) bucked the trend with a pickup in confidence, reflecting hopes for higher spending ahead as the festive period approaches. Services confidence (41%) fell slightly, with strong growth for financial & business services and communications offset by more downbeat responses from education, health and public administration.

Watch: Easy budgeting tips for when you leave home

Our goal is to create a safe and engaging place for users to connect over interests and passions. In order to improve our community experience, we are temporarily suspending article commenting