(Bloomberg) -- U.K. business confidence slumped in March as the coronavirus pandemic began to make its mark on companies, according to Lloyds Banking Group Plc.
About three quarters of firms said they were already affected by the outbreak, or expected to be -- a level that likely underestimates the scope of the fallout, as the survey of 1,200 companies closed a week before the country was put into lockdown in an attempt to slow the rate of infection.
Measures of economic optimism and hiring intentions declined, while sentiment was especially hard hit in the retail and services industries.
Consumers also took a knock to their confidence at the start of the month, a separate report by GfK showed. Households became more pessimistic about their own finances and the economy overall, and they pulled back from planning major purchases.
“This research was carried out during the first two weeks of March, when the coronavirus was headline news but not impacting day-to-day lives,” said Joe Staton, client strategy director at GfK. “Lockdown Britain can only expect further deterioration.”
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