A sharp rise in firms' optimism in the UK economy has been recorded by the Lloyds TSB corporate markets business barometer, despite the threat of future interest rate rises.
The balance of firms feeling optimistic, as opposed to pessimistic, about the UK economy rose by 12 per cent in April, showing a level of confidence more than double the survey's five-year average of plus 18.
Firms were also increasingly positive about their own business activity with 67 per cent of companies expecting an increase in trading and only two per cent of businesses predicting a decline.
"This leap in confidence suggests a robust April and the numbers imply that this rate of healthy economic growth will persist," said Trevor Williams, chief economist at Lloyds TSB corporate markets.
"Confidence among industrial companies also soared. It seems that despite weakness in industrial output levels, firms have been able to raise prices leading to the strongest level of profits in 18 months."
The business barometer, now in its fifth year, also noted that the survey data indicates economic growth is likely to outstrip the current consensus.
"With the stock market flourishing, corporate profitability is vigorous and confidence has surged. Encouragingly, this picture looks set to continue," Mr Williams added.
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