UK business morale hits four-month high in July, Lloyds survey shows

LONDON, July 31 (Reuters) - British businesses turned more confident about the economic outlook earlier this month, reflecting a brief fall in energy prices after a ceasefire in the Iran war, a survey by Lloyds showed on Friday.

"July's rise in confidence appears to reflect a more stable global backdrop. With lower energy prices and reduced uncertainty helping to lift firms' view of the wider economy," said Hann-Ju Ho, senior economist at Lloyds commercial banking.

"If global conditions become more uncertain again, sentiment could react, particularly where firms are still managing cost pressures and competitive conditions."

• Firms' overall confidence rose by 5 points ​to +49, above its 12-month average of +47 and the highest in four months

• The net balance in confidence about the wider ​economy leapt ​by 11 points to +42 with domestic firms reporting a 22-point increase in confidence to 25%, partly due to stronger demand

• A measure of companies' optimism about their trading outlook was unchanged at +56

• Smaller businesses with turnover below £1 million ($1.34 million) reported a strong increase in sentiment

• Confidence among manufacturing companies showed a 14-point rise ​to +47 in July, above ⁠its 12-month average of +45

• Lloyds' data was based on online polling ⁠by ​Ipsos of 1,200 businesses with ​annual sales of at least £250,000, conducted from July 1 to July 16.

($1 = 0.7473 pounds)

(Reporting by Suban AbdullaEditing by William Schomberg)