U.K. Business Confidence Worst Since 2008 Even as Lockdown Eases

(Bloomberg) -- U.K. business confidence slumped to match the record low seen during the financial crisis even as the country took its first steps to loosen coronavirus restrictions.

Economic optimism and hiring intentions both declined this month, according to a survey by Lloyds Bank published Friday. More than four in ten firms said they expect to reduce headcount over the next 12 months and 38% anticipate freezing pay.

British companies remained gloomy even as Prime Minister Boris Johnson announced some easing of the lockdown on May 10, including the reopening of some workplaces with social distancing. The survey was conducted between May 1-18.

“Despite the results partly capturing the period since the government’s announcement of an initial easing of restrictions, trading conditions remain difficult for most firms,” said Hann-Ju Ho, senior economist at Lloyds. “Nevertheless, a further relaxation of constraints will enable more businesses to resume their activities.”

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