Business confidence in the East rose seven points during October to 40%, according to the latest Business Barometer from Lloyds Bank Commercial Banking.
Companies in the East reported higher confidence in their own business prospects month-on-month, up seven points at 40%. When taken alongside their optimism in the economy, up eight points to 41%, this gives a headline confidence reading of 40%.
The region’s businesses identified their top target areas for growth in the next six months as evolving their offer (38%), diversifying into new markets (31%) and investing in their team (30%).
The Business Barometer, which surveys 1,200 businesses monthly, provides early signals about UK economic trends both regionally and nationwide.
A net balance of 24% of businesses in the region expect to increase staff levels over the next year, up 15 points on last month.
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Overall UK business confidence rose three points in October from 36% to 39%, and firms’ outlook on the overall UK economy increased four points to 34%. Businesses’ confidence in their own trading prospects also continued the upward trend, rising four points to 45%.
Companies’ hiring intentions reached their highest level since May last year, with 32% of firms intending to increase staff levels over the next 12 months, up six points month-on-month.
Firms in Yorkshire reported the highest levels of business confidence, jumping 12 points to 52% – the highest reading for the region since March 2022. Companies in the South West reported the biggest uptick in business confidence, increasing 26 points month-on-month to 47%.
Following a fall in confidence in September, the retail and service industries both saw an increase in business confidence, with retail business confidence increasing by five points to 37% and services rising seven points to 43%. Levels are still lower than seen in August, however, when retail business confidence was at 44% and services at 42%. Manufacturing confidence was 36%, unchanged from last month when confidence rose to a three-month high. Construction fell for a second month in a row to 31% (down five points).
Dene Jones, regional director for the East of England at Lloyds Bank Commercial Banking, said:
“October is possibly the most important month in the East of England’s economic calendar, as the harvest season moves into full swing and the region’s rich agricultural sector works to yield results. With confidence above the national average, it shows that firms are seizing on it.
“But opportunities to grow aren’t at everyone’s doorstep and many businesses need to be proactive if they’re to unlock expansion. Working capital is key, with a healthy level ensuring that firms can act quickly to meet changes in demand, and we’ll continue to be by their side to support them with the resources to capitalise on the opportunities.”
