Business confidence in the East Midlands fell 10 points during August to 52%, according to the latest Business Barometer from Lloyds Bank Commercial Banking.
Although East Midlands businesses’ confidence in the economy climbed three points to 53%, their confidence their own business prospects fell 25 points month-on-month to 50%. When taken together these figures give a headline reading of 52% (vs. 62% in July).
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 training (34%), entering new markets (32%) and evolving their offering, for example by introducing new products or services (31%).
A net balance of 44% of businesses in the region also expect to increase staff levels over the next year – the same proportion as in July.
The Business Barometer, which surveys 1,200 businesses monthly, provides early signals about UK economic trends both regionally and nationwide.
National picture
The East Midlands’ confidence remained above the UK average, which was unchanged from July in August at 50%.
UK firms’ confidence in the overall economy increased two points to 47%, offsetting marginally weaker confidence from businesses in their own trading prospects, which fell two points month-on-month to 54% but remained above the long-term average.
The North East was the most confident UK nation or region in August (65%), followed closely by Scotland (64%).
Sector insights
Output expectations for the various sectors remained at or near their three-year highs. Construction had a steep increase to 58%, up by 14 points, whereas other sectors experienced slight declines. Trading prospects for manufacturing dropped by 2 points to 58%, at the same level as construction, while Retail and Services fell to 53% down 7 and 3 points respectively.
Dave Atkinson, regional director for the Midlands, Lloyds Bank Commercial Banking, said: “East Midlands business confidence remains above the national average – a testament to the steps that companies have taken to manage challenging periods.
“Our local firms have ambitious growth plans for the month ahead, led by investment in their teams – something that could be bolstered by the recent announcement of new green and digital skills courses from North East Derbyshire District Council and Chesterfield Borough Council. Whatever their ambitions, we will continue to be by businesses’ side as they put their plans into action.”
