Business confidence in the UK rose for a third consecutive month in May...

...to its highest level in nearly a year, according to the latest Lloyds TSB Business Barometer.

The survey of more than 200 firms found that 44% expect their business activity to increase during the next 12 months, compared with 35% who stated this in April. Only 16% of respondents expect business activity to decrease, down from 21% who thought this in the previous month.

"While it would be premature to talk of an end to the recession, we should be careful not to overlook the significance of the growing confidence we are witnessing amongst businesses," said Trevor Williams, chief economist at Lloyds TSB Corporate Markets.

www.ukba.co.uk