UK business confidence has dropped to 35% in December, biggest plunge in more than a year,

The UK Lloyds Bank Business Barometer is an indicator of business confidence. it fell in December to 35% from 42% in November.

• biggest monthly decline since August 2022

November was 42%, a 21-month high. The survey's long-run average is 28%.

Lloyds Bank comment:

• economic outlook "remains tough"
• "Businesses are also balancing cost pressures with a challenging labour market that will see increases to minimum wage in April 2024 ... at a time when they are managing staff retention and recruitment decisions,"