Business Mayday

Confidence among British businesses slumped to an eight-month low in May.

The latest Lloyds Bank Business Barometer showed firms were worried about the wider outlook for trade.

But consumer confidence has picked up over the past month, despite millions of workers enduring a pay squeeze. Research by pollsters GfK found people were more upbeat about their own personal finances, the wider economy, shopping plans and saving.

The income squeeze, caused by rising inflation and slowing wage growth, is set to be one of the themes of next week’s General Election.