UK, Eurozone Business Sentiment Declines Amid Tariff Concerns

Business sentiment has declined in both the UK and the euro area, with recent surveys citing concerns over new U.S. tariffs and increased economic uncertainty. In Britain, the Lloyds Bank Business Barometer and CBI reports show confidence and private sector output falling, as firms anticipate higher inflation, rising costs, and are considering reducing hiring due to increased employment expenses and minimum wage hikes. The eurozone's Economic Sentiment Indicator also dropped, with services, industrial, and construction sectors all reporting worsening outlooks. Economists and central bankers warn that the ongoing trade tensions and tariffs are likely to further dampen growth and could be recessionary. Across these regions, companies expect to raise prices to offset higher costs, while uncertainty over future economic conditions is causing firms to defer investment and hiring decisions.