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It seems that those who own their own businesses are beginning to see some signs for hope as they become more and more confident about their business.

In fact, British businesses are now more confident about their future than at any time in the past fifteen months, and are regaining their optimism in the outlook for the wider economy, according to a survey by Lloyds TSB.

The survey, for August, shows that, the overall balance of firms expecting business activity to rise over the next 12 months gained an extra two percentage points, rising to 32% from 30% in July. The balance is calculated by deducting the percentage of firms with negative expectations from those with positive expectations.

The rise in the balance expecting better trading prospects was backed up by a further improvement in sentiment about the wider economy. The balance of firms anticipating better economic conditions in the next 12 months rose to 46%, from 40% in July.

Trevor Williams, chief economist of Lloyds TSB Corporate Markets, says: "We're now seeing a clear upward trend in firms' confidence about their own prospects and those for the economy as a whole. As global demand stabilises and shows signs of recovery, businesses are once again starting to rebuild their stocks, after many months in the doldrums. And that's giving them reason to be more upbeat.

"But we should not forget the impact that the extraordinary policy measures, such as record-low interest rates, are having on the economy at the moment. While we may see a return to growth in this quarter, any sustainable recovery is still very much dependent on these policy measures improving consumer and business spending. So, while the rise in confidence is welcome, an air of caution is more than appropriate."

SOURCE: Lloyds TSB, 08/09/09

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