Key Takeaways:
- 💼 British business confidence declined ahead of the budget plan
- 📉 Lloyds Bank’s business barometer dropped by 3 percentage points to +44% in February
- 📈 Firms were more optimistic about their own prospects than the broader economy
- 🧐 Increase in hiring intentions indicates employers want to grow their workforce
- 📊 Two surveys reported a drop in optimism among businesses, with overall economic confidence at a four-month low
- 💰 Possible revenue-raising changes, such as higher social security payments, expected in the upcoming budget announcement
- 💼 UK employers are showing signs of caution ahead of the budget
- 📊 Many firms are delaying hiring decisions until after the budget is announced
- 📈 Confidence in the economy remains positive
- 🗣 Concerns over potential tax increases in the budget announcement
- 👥 Hiring intentions show desire for workforce growth among employers
- 💰 China’s central bank activated its open market outright reverse repo operations facility
- 🏦 Operations will be conducted with primary dealers on a monthly basis
- 🔄 The aim is to maintain a reasonable abundance of liquidity in the banking system and enhance the central bank’s monetary policy toolbox.
British Business Confidence Declines Ahead of Budget Announcement
British business confidence has taken a hit ahead of the upcoming budget announcement. Lloyds Bank’s business barometer dropped by 3 percentage points in February, signaling a decline in optimism among UK employers. Despite this decrease, firms remain more positive about their own prospects compared to the broader economy.
Hiring intentions also show an interesting trend, with many employers expressing a desire to grow their workforce. However, concerns over possible revenue-raising changes, including higher social security payments, have led to cautious behavior among UK businesses.
In addition to the challenges faced by British businesses, China’s central bank has taken measures to maintain liquidity in the banking system through its open market outright reverse repo operations facility. This move aims to enhance the central bank’s monetary policy toolbox and ensure a reasonable abundance of liquidity in the banking system.