Business confidence in the East Midlands held steady in December, unchanged from November at 38%, according to the latest Business Barometer from Lloyds.
While companies in the East Midlands reported lower confidence in their own business prospects month-on-month, down 13 points at 39%, their optimism in the economy rose 12 points to 36%. Taken together, this gives a headline confidence reading of 38% (unchanged from November).
A net balance of 33% of businesses in the region also expect to increase staff levels over the next year, up eight points on last month.
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 (44%), evolving their offering, for instance with new products or services (30%) and introducing new technology (29%).
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 fell two points in December to 39%, although remained above the long-term average of 29%.
While firms’ confidence in the wider economy strengthened five points to 31%, their confidence in their own trading prospects fell eight points to 47%.
London was the most confident UK nation or region in November (53%) for a second month in a row, followed by the North West (50%).
Sector insights
Although confidence fell in the service sector, this was partly offset by rises in manufacturing and retail, with these sectors swapping places in December.
Services fell from 46% to 35% in December – a fall of 11 points. In contrast, manufacturing and retail increased 10 points to 42% and 43% respectively, thereby taking manufacturing and retail above services for the first time in 4 months.
Trading prospects for retail rose for the first time in three months, while construction confidence was steady at 41%, equalling last month’s result.
Dave Atkinson, regional director for the East Midlands at Lloyds, said: “The East Midlands has bucked the national trend this month, with confidence holding firm. And it’s incredibly encouraging to more businesses setting out plans to hire in the year ahead – a move that will benefit their local communities and the local economy, as well as their own operations.
“As businesses look ahead to the new year, we’ll continue to be by their side with our support to help them make the most of any new opportunities that arise.”
