Business confidence in the East Midlands fell two points during February to 37%, according to the latest Business Barometer from Lloyds.
While companies in the East Midlands reported greater optimism in the economy, up five points to 30%, their confidence in their own business prospects fell 10 points month-on-month to 43%. Taken together, this gives a headline confidence reading of 37% (vs. 39% in January).
Looking ahead to the next six months, East Midlands businesses identified their top target areas for growth as investing in their team, for example through training and development (43%), evolving their offering, for example by introducing new products and services (34%), and investing in sustainability (32%).
A net balance of 35% of businesses in the region also expect to increase staff levels over the next year, up five points on last month.
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%.
The North East was the most confident UK nation or region in February (69%), followed by the North West and East of England, both at 61%.
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.
Dave Atkinson, regional director for the East Midlands at Lloyds, said: “Despite a slight dip in business confidence, it’s positive to see the region’s firms still setting out clear plans for growth, with investment in their people, service and product innovation, and sustainability at the fore.
“We’ll continue to provide our tailored, on-the-ground support to help local firms on their growth journeys.”
