New US trade tariffs influence UK business morale

Sentiment in the British business environment has fallen to its lowest level in three months. The country’s employers are concerned about the impact of new tariffs from the US and turbulent economic environment.

In April, the Business Barometer indicator of The Lloyd Bank, a measure of confidence among UK companies, fell 10 points to 39%. Another indicator reflecting economic optimism fell by 13 points to 29%.

Earlier, the United Kingdom economy showed a record upturn in the last 11 months. However, investors' attention was focused on new tariffs from the United States President Donald Trump, which noticeably affected the growth rate.

Meanwhile, over the last month, the inflation rate in the country slowed down to 2.6%. However, based on the expectations of the main financial regulator—the Bank of England, this indicator may increase to 3.7% by the end of the year. The reason for this could be a growing household bills and rising labor costs.