Business confidence in the East Midlands rose one point during January to 39%, 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 14 points at 53%. When taken alongside their optimism in the economy, down 11 points to 25%, this gives a headline confidence reading of 39% (vs. 38% in December 2024).
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 (51%), investing in their team, for example through training (38%) and introducing new technology such as AI or automation (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 January to 37%.
While firms’ optimism in their own trading prospects strengthened four points to 51%, their confidence in the wider economy dropped seven points to 24%.
For the third month in a row, London was the most confident UK nation or region in January (55%), with the West Midlands following behind (51%).
Sector insights
There were similar falls in manufacturing, construction and retail this month, with a slight increase in services. Confidence fell to 38% in manufacturing (down 4 points), 36% in construction (down 5 points), and 40% in retail (down 3 points). However, confidence in services increased by 3 points to 38%.
These results come within a general trend of larger confidence declines in retail and services in recent months. Within the services sector, confidence has notably fallen in hospitality but has remained more stable in business services and health-related services.
Dave Atkinson, regional director for the East Midlands at Lloyds, said: “The resilience and ambition of businesses in the East Midlands is evident in this month’s results. And it’s particularly encouraging to see businesses prioritising steps that will support their long-term growth, such as investments in their team and technology.
“As firms kick-off their 2025 plans, we’ll continue to be their side to help them make the most of every opportunity ahead.”
