Business confidence in the East of England rose 34 points during February to 61%, according to the latest Business Barometer from Lloyds.
Companies in the region reported higher confidence in their own business prospects month-on-month, up 25 points at 74%. When taken alongside their optimism in the economy, up 42 points to 48%, this gives a headline confidence reading of 61% (vs. 27% in January).
This was the joint-second highest confidence reading of any UK nation or region in February, tied with the North West of England (also 61%) and behind the North East (69%).
A net balance of 38% of businesses in the East also expect to increase staff levels over the next year, up 18 points on last month.
Looking ahead to the next six months, businesses in the region identified their top target areas for growth as evolving their offering, for example by introducing new products or services (46%), entering new markets (45%) and introducing new technology, such as AI and automation (35%).
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.
National picture
Overall, UK business confidence rose 12 points in February to 49% — its highest level since August 2024.
Firms’ optimism in their own trading prospects increased six points to 57%, while their confidence in the wider economy rose 18 points to 42%.
Sector Insights
All four sectors surveyed saw double-digit increases in confidence. The largest improvements were seen in manufacturing, which rose by 13 points to 51%, and construction, which increased by 14 points to 50%. Retail also experienced a significant gain, up 11 points to 51%, and services rose by 10 points to 48%.
Within the services sector, hospitality firms posted a particularly strong rebound in sentiment. Confidence across these sectors reached their highest levels in several months, ranging from four months in services to seven months in manufacturing.
Kirsty Sadler, regional director for the East of England at Lloyds, said: “Confidence continues to build in the East, driven by a stronger economic outlook.
“We’ll continue to support businesses as they work to capitalise on their confidence and make the most of new opportunities – whether that’s launching new products or services, or transforming their operations with new technologies.”
