The survey - a monthly snapshot of company views on the outlook for the economy - shows that optimism amongst UK businesses fell from the 27 month high reached in March. It shows that just under half of UK businesses (49%) expect business activity to rise over the coming year, while less than one in ten (7%) believe trading will slow. The resulting balance of +42 represents a slight fall from the high of +49 reached in the previous survey.
Despite this slight dip in confidence, business optimism remains above the Barometer's long term average - an indication that medium term growth prospects are still positive.
There are also signs that companies now have brighter hopes for the wider economy. The total balance of firms saying they are more optimistic than they were three months ago rose four points to 47%. Two thirds (64%) of businesses say they are more optimistic, while a fifth (17%) are less so.
Trevor Williams, chief economist, Lloyds TSB Corporate Markets, said: "Although business confidence appears to have come off the boil this month, we need to be careful about interpreting the results.
"Expectations for improvements in business activity may have slipped, but they are still comfortably in line with the long term average - and that's a good indication that long term growth prospects remain positive.
"We're also seeing some signs that businesses are more hopeful about the general economy. The Barometer's measure of business confidence compared to the previous three months is a reliable leading indicator of shorter term economic activity and it too is on the rise."
