According to Lloyds Bank (LLOY.L) Business Barometer, which surveyed 1,200 firms, overall sentiment around market confidence stood at 43% - well above the long-term average of 28%.
Six of the 12 regions saw confidence improve or remain stable, with London remaining the most confident at 65%.
The other regions that saw an increase were the East Midlands (up seven points to 55%), West Midlands (up four points to 50%), the South West (up one point to 48%) and the East of England (up three points to 33%).
The research, which was conducted before the chancellor’s Autumn Budget, showed some positive findings on employment, which “may point towards the easing of staff shortages suffered in some sectors”, Lloyds said.
Meanwhile, six in 10 (60%) British companies that have furloughed staff, said they were looking to bring them all back, while 30% of firms expect more than half to return.
Some 48% of businesses also said that it has become easier to hire people with the right skills or experience since the end of the Coronavirus job retention scheme.
Hann-Ju Ho, senior economist at Lloyds Bank Commercial Banking, said: “While economic optimism saw a slight dent due to rising costs and the ongoing supply chain issues, it is clear that firms are still feeling relatively buoyant as overall business confidence remains high and above the long term average.
“With 60% of firms saying that they expect to bring all their furloughed staff back to work, and a further thirty percent intending to bring back more than half, it should bode well for the labour market as we head into the winter.”
