Business confidence in the East Midlands rose six points during March to 43%, according to the latest Business Barometer from Lloyds.
Companies in the East Midlands reported higher confidence in their own business prospects month-on-month, up seven points at 50%. When taken alongside their optimism in the economy, up five points to 35%, this gives a headline confidence reading of 43% (vs. 37% in February).
A net balance of 42% of businesses in the region also expect to increase staff levels over the next year, up seven points on last month.
Looking ahead to the next six months, East Midlands businesses identified their top target areas for growth as evolving their offering, for example by introducing new products or services (47%), entering new markets (39%) and investing in their team, for example through training (38%).
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. This data was gathered between the 3rd – 17th March, ahead of the Spring Statement.
National picture
Overall, UK business confidence was 49% in March – the same as in February.
While firms’ optimism in their own trading prospects held steady at 57%, their confidence in the wider economy dropped one point to 40%.
The West Midlands and London were the joint most-confident of any UK nation or region in March (both 62%), followed by the North West (59%).
Sector insights
Retail confidence rose seven points to 58%, a post-pandemic high, reflecting positive trading prospects.
In contrast, the manufacturing sector saw the largest decrease in business confidence this month, declining 12 points to 39%, due to increased concerns about supply chain disruptions. Construction firms also saw a decline to 48% and businesses in the service sector saw confidence decline to 47%.
Dave Atkinson, regional director for the East Midlands at Lloyds, said: “It’s great to see business confidence in the East Midlands rise this month, and particularly to see it driven by greater confidence from firms in their own prospects.
“As local companies press ahead with their growth plans, we’ll continue to provide our tailored, on-the-ground support – helping them make the investments they need to achieve their ambitions.”
