UK Business Confidence Falls to 17-Month Low in September on Iran War Costs

British business confidence dropped to its lowest level since April 2025 in September, according to a Lloyds Bank survey released Wednesday, as the Iran war drove up energy prices and darkened executives' outlook on the global economy. The Lloyds Bank monthly business confidence index fell 12 points to +41%, below its 12-month average of +47%. Optimism about the wider economy plunged 18 points to +31%, while firms' own trading outlook declined 8 points to +50%. The survey of 1,200 British businesses with annual sales of at least £250,000 ($331,400) was conducted by Ipsos between September 2 and September 16. Lloyds senior economist Hann-Ju Ho attributed the decline primarily to higher global energy prices and increased global uncertainty. The percentage of firms planning to raise prices in the next 12 months rose slightly.