Overview

• The Lloyds Bank business barometer climbed 11 points to 50% in May, its strongest reading since August 2024.
• Confidence reached 66% in the East Midlands and 65% in the North East, while Scotland’s barometer rose 12 points to 52% and the South West jumped 23 points to 45%.
• Retail sentiment fell five points to 40%, the lowest level since January 2025, even as construction and services sectors hit near-record highs.
• UK inflation climbed to 3.5% in April—the highest since January 2024—while GDP expanded by 0.7% in the first quarter of 2025.
• Following a US court decision deeming Trump’s tariffs illegal, 34% of companies plan pay rises of 3% or more and 65% intend to lift prices over the next year.