The Lloyds Bank Wholesale Banking and Markets Business Barometer fell to minus 21% from 26% last month, meaning most respondents are negative on the view of the economy.
The eurozone crisis continued to escalate throughout May as fears grew over the health of the Spanish economy and the possibility of Greece exiting the euro.
Trevor Williams, chief economist at Lloyds Bank Wholesale Banking & Markets, said: "The renewed concern around the eurozone is clearly having an impact on businesses' sentiment towards prospects for the UK economy and, to a lesser extent, to their own prospects."
Companies also became less confident about their own prospects, although the decline was not as severe as the sentiment towards the broader economic outlook.
Businesses' confidence in relation to their own prospects currently stands at 35%, down eight points on April's 43%, Lloyds said, which still remains higher than during the worst of the financial crisis in 2008/09.
The survey data suggest an underlying 0.2% growth in gross domestic product (GDP) between April and June, Lloyds said, but only once the impact of the Diamond Jubilee is taken into account, which is likely to have reduced growth by 0.5 percentage points.
The most notable declines in confidence in May came in the North and Midlands and in the retail and distribution sector.
The deepening troubles in the eurozone have also hit confidence on stock markets.
Debt-ridden Greece, which is in its fifth year of recession, faces a crucial election later this month, which has been branded a referendum on whether it will stay in the eurozone and stomach more painful austerity measures.
Meanwhile, there are fears over the health of Spain's banking sector, after its fourth biggest lender, Bankia, said it needed a 19 billion euro (£15.2 billion) bail-out. In the UK, banking stocks have been among the worst hit.
Copyright (c) Press Association Ltd. 2012, All Rights Reserved.
Is there still a place for the high street as online shopping continues to grow? - femalefirst.co.uk
Online shopping has plenty of perks, the most important being that you can avoid cues and angry people, but then so does shopping on the high street. Which do you prefer?
The question constantly uprises about whether the British high street can survive when online shopping continues to rise. What do you think?
The instant buzz of shopping online has reached a new high for clothes shopping, with 44 per cent of Brits now hitting the net at least once a month or more for their clothing purchases, with a committed 3 per cent doing this daily. This is second only to groceries in terms of the nation’s buying habits, according to new research from Cotton Council International, published today.
Clothes shopping online has risen to 13 per cent - up from only 3 per cent two years ago, with consumers moving away from chain and speciality stores.
New research reveals 42 per cent of consumers now use the internet to compare products and prices across stores; a third go online to browse the latest styles.
Stephanie Thiers-Ratcliffe, International Marketing Manager, Cotton Council International comments: “Our research reveals that there has been a marked uplift for people going online to research and buy clothing, but not at the expense of quality. This trend has seen retailers across the board take more of an interest in their online clothing offering – ensuring the customer experience, delivered both on and offline, is second to none.”
This year’s findings also shows that when shopping, Brits are choosing natural fibres, with over a third feeling that better quality clothing comes from natural fibres. And when shopping it’s cotton that comes out in front as the fabric of choice, with over a half of consumers heralding it as their preferred fibre for the clothes they like to wear the most.
Mirroring the economic climate, only 10% of us bought more than £500 on clothes last year, with the average amount spent being only £230. Over half of Brits fear they have less money to spend on clothing compared to last year, making spotting a bargain more important than ever as 40% of us now admit we buy clothes with at least a 20% discount all or most of the time. We’re also shopping less for ourselves than two years ago, as the figures indicate a 9 per cent drop, which leaves just 40 per cent of us now shopping once a month or more for clothes.
Nonetheless, a prevailing trait for British shoppers remains the desire for quality – with almost 60 per cent of us preferring to spend more on better quality items, with 61 per cent of consumers viewing ‘good quality’ clothes as those that are durable and long-lasting.
Cotton Council International’s biennial research – The Global Lifestyle Monitor Survey (GLM) investigates a wide range of lifestyle issues related to clothing, shopping and textiles among UK residents.
Stephanie Thiers-Ratcliffe, continues: “Today’s shoppers are more vigilant than ever – thinking harder about their clothing purchases and examining what and how much they need to buy. When shoppers are spending their cash they are ensuring that they get the best value by choosing quality items. Our COTTON USA ‘Naturally’ Mark is a symbol of purity, strength, comfort and quality and helps shoppers to identify premium cotton items that are made to last.”
No comments:
Post a Comment