Business confidence boosted by export activity

Date: 8th March 2010

British businesses have had their confidence boosted by an increase in export activity, a new report has revealed.

According to the latest Business Barometer from the Lloyds TSB banking group, the current weak state of the pound has led to an increase in exports from the UK.

The knock-on effect of the growth is more confidence about the wider economic climate in the UK among businesses, according to Lloyds TSB.

Trevor Williams, the organisation's chief economist, said: "For many UK firms involved in exporting it has provided a welcome confidence boost - and that's why we've seen such a sharp rise in overall company views about the economic outlook.

"It is also important to look at the views businesses have of their own prospects - and it's clear that, while confidence is on the rise, the mood is still very much one of cautious optimism."

However, despite the growth in export, the report revealed that the majority of firms remain "cautiously optimistic" about the future.