Business confidence in the East Midlands fell 12 points during November to 38%, according to the latest Business Barometer from Lloyds.
Companies in the East Midlands reported lower confidence in their own business prospects month-on-month, down 12 points at 52%. When taken alongside their optimism in the economy, down 11 points to 24%, this gives a headline confidence reading of 38% (vs. 50% in October).
Looking ahead to the next six months, East Midlands businesses identified their top target areas for growth as evolving their offering, for example through new products and services (48%), entering new markets (34%) and investing in their team, for example through training (34%).
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 dipped slightly in November to 41% – down three points from October’s 44% – but remained above the long-term average of 29%.
While firms’ confidence in their own trading prospects strengthened two points to a net balance of 55%, their confidence in the economy fell nine points to 26%.
London was the most confident UK nation or region in November (57%), followed by the West Midlands (51%).
Sector insights
Firms in the manufacturing sector reported the first rise in trading prospects in four months, with the net balance up three points to 49%. Companies in construction and services also indicated stronger business growth outlooks with net balances of 56% (up six points) and 61% (up four points), respectively.
Retail firms, however, signalled softer prospects for a second month running, with the trading prospects’ net balance down six points at 45%.
Dave Atkinson, regional director for the East Midlands at Lloyds said: “Despite a dip in confidence this month, businesses in the East Midlands remain focused on growth as we look ahead to 2025, planning steps from launching new products and services to entering new markets. Whatever their ambitions, we’ll remain by their side with our tailored support.”
Hann-Ju Ho, Senior Economist, Lloyds Commercial Banking, said: “In November, the overall confidence metric fell by three points for the third month running. This is the lowest level since June, but still above the survey’s long-term average, which is ultimately positive from a longer-term perspective.
“These results suggest that while firms have mixed views about the economy, they see their businesses in a good place to cope with any challenges they might face. Hiring intentions, although moderating this month, haven’t fallen by much which is also positive news.
“Overall, these results show that businesses are still positive and feeling resilient, albeit with tempered views on the economic outlook.”
