UK business confidence sees biggest rise in three years, Lloyds Bank says

Business confidence in the UK improved for a third consecutive month in a row in August, the results of a closely-followed survey showed.

Nonetheless, nearly half the firms surveyed either still had staff on furlough or were not yet ready to commit to retaining everyone.

Lloyds Bank's Business Barometer rose by eight percentage points to -14%.

That was also the biggest monthly increase for three years, although the gauge remained below its historical long-term average.

Sentiment improved in all industry groups, especially in manufacturing, with a sub-index for the factory sector jumping from -7% to -21%.

Meanwhile, the proportion of firms reporting a negative impact from the novel coronavirus fell, by four percentage points to 62%.

Confidence in the South East registered the biggest improvement, Lloyds said.