East of England business confidence climbs, buoyed by economic optimism
Business confidence in the East of England climbed above the national average in June, rising by seven points to 53%, according to the latest Business Barometer from Lloyds.
Companies in the East reported greater confidence in the economy, up 14 points at 46%. When taken alongside their optimism in their own business prospects, which was unchanged at 60%, this gives a headline confidence reading of 53% (vs. 46% in May).
A net balance of 45% of businesses in the region also expect to increase staff levels over the next year, up 19 points on last month.
Looking ahead to the next six months, East of England businesses identified their top target areas for growth as investing in their teams, for example through training (48%), evolving their offering, for example by launching new products or services (46%), and entering new markets (43%).
The Business Barometer, which surveys 1,200 businesses monthly and which has been running since 2002, provides early signals about UK economic trends both regionally and nationwide.
Overall, UK business confidence increased one point in June to 51%.
Firms’ optimism in their own trading prospects strengthened one point to 57%, while their confidence in the wider economy also rose one point to 45%.
Wales was the most confident UK nation or region in June (67%), followed by London (64%).
Business confidence in the manufacturing and retail sectors saw significant gains this month, with 12-point rises in both sectors to 52%. For manufacturing, this demonstrates an 11-month high.
Construction and services however saw decreases in confidence, with falls by five points and four points respectively.
Kirsty Sadler, regional director for the East of England at Lloyds, said: “Stronger economic optimism has driven the East’s confidence levels back above the national average.
“Across the region, businesses are focused on capitalising on growth opportunities. As just one example, we recently supported PIC Construction Group in Brentwood as part of its plans to boost turnover and create 100 new local jobs. Other businesses will have similar ambitions, and we’ll be ready to help them take the required next steps.”
Hann-Ju Ho, Senior Economist, Lloyds Commercial Banking, said: “Business confidence has continued its positive momentum, following the significant gains we saw in May.
“In particular, the sustained rise in hiring intentions suggests that while firms do still face challenges, they may be starting to look beyond short-term staffing needs and preparing for future growth.”