LONDON, Dec 23 Reuters British business confidence fell to its lowest level of 2024 in December but employers were a bit more optimistic about the wider economy, according to a survey published on Monday, while separate data showed a preChristmas rise in hiring and pay.

The Lloyds Bank Business Barometer measure of confidence among companies fell by 2 points to 39, still above its longrun average of 29.

HannJu Ho, senior economist at Lloyds Bank Commercial Banking, said the fall extended a drift down since the summer.

The key difference in this month39;s results is that the fall in confidence is driven by firms39; own trading prospects, he said. There was, however, more positivity regarding the wider economy and, going into 2025, this offers some hope if companies continue to feel confident about the economy.

Britain39;s economy contracted in September and October the first consecutive monthly falls in output since the COVID19 pandemic as employers worried about the new government39;s first budget which was announced on Oct. 30.

The Bank of England last week forecast zero growth in gross domestic product in the final quarter of 2024 but it kept interest rates on hold as it awaited more clarity on the impact on inflation from the budget39;s tax increases for employers.

Lloyds39; gauge of price intentions increased slightly in December and remained well above the longrun average.

A separate survey suggested the labour market was recovering some of its momentum in…