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flag UK business confidence dipped slightly in January 2026 due to falling global outlook, despite stronger domestic sentiment and hiring plans.

flag UK business confidence fell slightly in January 2026, with Lloyds' barometer dropping to +44% from +47% in December, driven by a sharp 14-point decline in global economic optimism to a one-year low of +28%. flag Despite broader concerns, confidence in domestic operations rose to a three-month high of +59%, hiring plans improved, and wage growth expectations increased, with over 20% of firms anticipating 4% or more raises—the highest in five months. flag The survey of 1,200 UK firms cited global tensions, including U.S. threats of tariffs on Europe, and potential tax changes as contributing factors, though overall sentiment remains above the long-term average.

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