Business confidence in the United Kingdom has fallen sharply as a result of the pervasive new corona virus. Consumers are also less sure about the financial future. This can be concluded from studies by the British bank Lloyds and market researcher GfK.
Lloyds’ survey of 1,200 companies shows that three-quarters of companies expect to be affected in some way by the virus. It should be noted that most respondents completed the survey before the UK government introduced strict measures to curb the spread of the virus. According to Lloyds, the chance that sentiment has diminished even more is likely. The measures have hit the retail and service sectors in particular.
Consumer confidence also faded, according to a separate report from GfK. Households became more pessimistic about their own finances and the economy in general and less willing to make large purchases. This study was conducted in the first two weeks of March when the coronavirus had a minor impact on daily life in the UK.