British businesses remain confident about the UK economy despite January's unexpected interest rate hike, a survey reports.
According to the Lloyds TSB bank, the number of firms expressing increased optimism about the wider economy reached 54 per cent, a rise of 19 per cent from the 35 per cent figure recorded in December.
Its business barometer showed that the majority of firms in the UK are confident in their own future, with 62 per cent of businesses expecting an increase in trading in the next 12 months and only six per cent predicting a decline in activity.
The report also reveals that confidence in the industrial sector, up 22 per cent increase in assured businesses within the area, is greater than in the service sector.
Trevor Williams, chief economist at Lloyds TSB capital markets, said: "Thankfully the December blip in confidence was short lived. The continued recovery in manufacturing, strong retail sales growth and robust earnings and employment conditions have knitted together to provide a bedrock of optimism for UK firms' 2007 expectations."
He added: "Strong growth in the global economy and in the UK's main markets in Europe is boosting companies' orders and sales, even though the pound is firm."
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