More firms are expecting to increase capital expenditure

The Lloyds report shows that almost a third of businesses (32 per cent) expect to increase their capital expenditure over the next six months while one in 10 (10 per cent) are planning cutbacks.

Jon Pulford of Lloyds in Yorkshire

This results in a net balance of 22 per cent planning to ramp up investment in the second half of the year, which is an increase of seven points from January.

Sign up to our Business newsletter

Sign up to our Business newsletter

On a national level, Lloyds said that all company sizes set to do well with confidence improving the most for small businesses.

Business confidence has improved the most among companies with annual turnover of below £1m. The net confidence balance for these firms is up 15 points at 49 per cent. The strongest levels of confidence were for firms in the £2-5m and above £15m turnover brackets, both at 58 per cent.