Shift in sentiment towards UK economy amid increased optimism from financial institutions

Economic pessimism also falls

Nearly half of financial institutions have expressed faith that UK economic growth will improve over the next 12 months, more than double the number who held such expectations in 2023, according to a survey by Lloyds Bank.

The 48% figure marked a significant uptick in optimism compared to the 21% who expressed the same sentiment last year and the meagre 7% who forecasted domestic growth in 2022, as revealed by Lloyds Bank's Financial Institutions Sentiment Survey 2024.  Pessimism about Britain's fiscal prospects also dwindled, with only 8% of respondents anticipating a worsening of economic conditions, a stark contrast to the 36% who shared this view a year ago and the 70% who harboured such concerns in 2022.  Falling UK wage growth boosts chances of August rate cut Lloyds Bank's head of market insig...