Business confidence in the East Midlands fell 13 points during September to 39%, according to the latest Business Barometer from Lloyds Bank Commercial Banking.
However, companies in the East Midlands reported higher confidence in their own business prospects month-on-month, up seven points at 57%. When taken alongside their optimism in the economy, which dropped 31 points to 22%, this gives a headline confidence reading of 39% (vs. 52% in August).
Looking ahead to the next six months, businesses in the East Midlands identified their top target areas for growth as investing in their team, for example through investing in training (45%), evolving their offering, with the introduction of new products or services (42%) and entering new markets (36%).
The Business Barometer, which surveys 1,200 businesses monthly, provides early signals about UK economic trends both regionally and nationwide.
National picture
Overall UK business confidence in September dipped slightly, to 47%, down from August’s 50%.
Though there was a marginal increase in their own trading prospects (up two points month-on-month to 54%), firms’ confidence in the overall economy dropped nine points to 38%.
The joint-most confident regions in the UK were the West Midlands and London, both reporting overall confidence of 59%. Only Northern Ireland, Wales, London, the South West and North West reported an increase in overall confidence.
Sector insights
Projections for output were mixed across the sectors, with some showing significant changes from previous results. In construction, the sharp increase last month was largely counteracted by a drop in expectations in September, falling by 12 points to 46%.
Similarly, in manufacturing, trading prospects fell for a second month to 53%, although this figure is still stronger than the year-on-year figure. However, the falls in manufacturing & construction sectors were more than offset by a small rise in retail and a bigger rise in the dominant service sector.
Dave Atkinson, Regional Director for the East Midlands at Lloyds Bank Commercial Banking, said: “Despite an overall dip in confidence, businesses’ optimism in their own prospects has rebounded, a promising sign of on-the-ground success.
“Coupled with a clear determination to hone in on particular areas for expansion – like staff training and diversification – these results paint a picture of quiet confidence in the region, in spite of wider economic challenges.
“And regional businesses’ focus on evolving their offering and entering new markets isn’t just theoretical, as a recent study by the East Midlands Chamber and Derby Business School found that the number of businesses that have made income from environmentally friendly goods and services increased by 7% in the last year.
“As even more businesses take this leap, Lloyds Bank will continue to offer on the personalised, on-the-ground support that they need.”
