Monday 5th February 2007
Business banking confidence rose sharply in January, Lloyds TSB has found.
Despite the increase in the Bank of Englands base rate, firms included in Lloyds TSBs monthly business banking survey reported high levels of confidence.
The majority of firms (54 per cent) now claim to be optimistic for the future, compared with 35 per cent in December.
Meanwhile, the difference between the number of managers feeling optimistic and those predicting a downturn in economic fortunes was up to 32 per cent from one per cent in December.
Trevor Williams, chief economist at Lloyds TSB Corporate Markets, said: "Strong retail sales growth and robust earnings and employment conditions have knitted together to provide a bedrock of optimism."
"Strong growth ... is boosting companies orders and sales, even though the pound is firm," he added.
A total of 62 per cent of respondents expected that their own business is likely to perform more strongly over the coming 12 months.
Lloyds TSB Corporate Markets says it provides services to companies with annual turnover in excess of £2 million.
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