LONDON — UK businesses are continuing to invest in their workforce despite softer confidence in the wider economy, according to the latest Lloyds Business Barometer.

The survey found that overall business confidence eased during June as firms continued to monitor rising operating costs and global uncertainty. However, optimism about individual company performance remained comparatively strong, with nearly two-thirds of businesses expecting higher output over the next year. Hiring intentions also increased for the first time in three months.

Business leaders say resilient customer demand and improving supply chain conditions are helping support investment decisions, even as companies navigate inflationary pressures and changing market conditions.

Manufacturing confidence weakened during the month, but many firms continued to prioritise digital transformation, productivity improvements and long-term expansion strategies to strengthen competitiveness.

Economists say the findings suggest Britain's business sector remains resilient despite a mixed economic backdrop. Markets will now watch upcoming inflation, employment and investment data for further signs of how corporate confidence develops during the second half of the year.