Lloyds Bank has issued an 'uncertain' warning for businesses facing the need to make changes amid the macroeconomic outlook. The bank, which has branches in Birmingham, reported that more than eight in 10 businesses are resilient to global economic shocks, while over half of firms expect to grow this year.
Six in 10 Adjust Business Strategy
Six in 10 businesses have adjusted their strategy to mitigate the impact of volatility. Businesses are deploying cashflow forecasting, working capital facilities or overdrafts, and interest rate hedging to mitigate global uncertainty, according to Lloyds, which competes with NatWest, Nationwide, Barclays, HSBC UK, and Santander.
Impact of Global Uncertainty
More than half (57%) of businesses say they have been impacted by recent global uncertainty, with rising costs (45%) and supply chain disruption (37%) cited most frequently as consequences. Despite this, a further 57% of firms said they still expect to grow this year, while 30% expect trading levels to remain the same.
Active Strategy Adjustments
Nearly six in 10 (59%) firms are actively adjusting their strategy in response to global economic conditions and uncertainty. Among those taking action, more than half (51%) have introduced cost-saving measures, while more than a third (35%) have increased their inventory levels. The same proportion (35%) have locked in commodity, raw material, or input prices to mitigate economic shocks linked to recent market volatility.
CEO Comments on Business Resilience
CEO Amanda Murphy said: 'What we’re seeing from businesses is not just resilience, but decisive action in the face of ongoing uncertainty. Across sectors like manufacturing, logistics and food production, firms are taking practical steps to protect their operations – increasing inventory and locking in costs where they can.'
'Many also recognise that global supply chain challenges and energy market volatility are structural issues, not temporary blips. In response, businesses are managing costs, securing supply and building greater resilience into their operating models. That puts greater focus on working capital and funding, but it also reflects a confidence. Firms are backing their ability to navigate uncertainty and continue to grow.'
