Business optimism rebounds in November, says Lloyds

Business optimism in the UK rebounded from an 18-month low in November, according to the Lloyds Business Barometer released on Thursday.

The bank's optimism barometer, which measures UK companies' views on prospects for the economy, rose to 42 this month on the back of an easing of volatility across financial markets.

This was up from September's reading of 35 for the index, which dropped 22 points to it lowest level since April 2013.

Lloyds said that 58% of firms were optimistic about the economy, while the number of firms with a negative outlook fell to 16%, from 21% in October.

Meanwhile, the net balance of firms expecting an increase in their staffing levels over the next year rose to 36% from a seven-month low of 35% previously.

“The recovery in sentiment for this month’s survey has coincided with a fall in financial market volatility compared with last month," said Trevor Williams, the chief economist for Lloyds Bank Commercial Banking.

"We expect healthy growth for 2014 at around three per cent and anticipate only a modest slowdown in growth as we enter the New Year," he said.