Overview

• Private sector confidence fell to 42% from 54%, though it remains above the long‑term average, according to Lloyds’ Business Barometer.
• Economic optimism dropped 11 points to 33% and trading prospects declined 12 points to 51%, marking the second fall since April.
• Sector readings weakened sharply, with manufacturing confidence down 31 points to 31% and retail sentiment down 17 points to 40%.
• More than half of firms expect to increase headcount over the next year while about 60% plan price rises, with only 2% anticipating price cuts.
• Lloyds’ senior economist said earlier market volatility likely weighed on sentiment and noted markets expect Bank of England rate cuts within six months, as some coverage highlights concern over possible tax rises in the autumn Budget.