2014.06.3002:01:17UTC+00Optimism among UK businesses near all time high

In a promising indication of a spreading economic recovery, more UK businesses are feeling confident that they can deliver a strong performance for the rest of the year.

A survey conducted by Lloyds Bank with 1,500 respondents found out that companies across all regions in the UK in various industries have mostly positive forecasts regarding their own profit and order levels during the next six months. As a result, the UK earned its highest business confidence score in twenty two years of 53, representing an improvement of 8 points. The highest ratings were given by those coming from construction, manufacturing, transport, and communications while hospitality and leisure had the lowest.

The widespread optimism bodes well for the continued recovery of the country especially as businesses also expressed their plan to increase employment in the latter part of the year. With the intent to to also engage in more capital spending through construction and manufacturing, the optimism looks on its way to further alleviate more sectors.

Meanwhile, a separate quarterly survey by business lobbyer CBI together with professional services group PwC for the financial industry found a drop in profitability and employment. Outlook remains encouraging, however, as financial services companies expect these areas to improve due to gains in business volumes together with planned investments in marketing and information technology.

According to CBI director for competitive markets Matthew Fell, weighing in heavily on the banking and investment industry is increased concerns about regulations for expansion of businesses and the capability of businesses to adapt to an increase in demand.

Also in their radar are comments made by Bank of England deputy governor Charlie Bean that expressed the probability of a slight interest rate hike near the beginning of 2015 as part of a gradual increase to 2.5% over the next three years.