Mid-sized businesses in the East Midlands are showing increased confidence despite rising employment costs, according to Grant Thornton UK LLP’s latest Business Outlook Tracker. The report highlights a shift in hiring strategies, with 50% of businesses now planning to reduce or freeze hiring, up from 43% in December 2024. Many also review pay increases, bonuses, and employee benefits to manage costs.
Despite these challenges, 73% of mid-sized firms in the region are optimistic about revenue growth over the next six months, up from 65% in December. Profit expectations have also risen, with 72% forecasting an increase, compared to 43% previously.
In contrast, larger corporations across the UK are becoming less optimistic, with a 10-percentage-point drop in confidence about the UK economy and declines in expectations for funding, revenue growth, and profit increases.
Grant Thornton’s Matt Buckingham noted that East Midlands businesses are adapting quickly, leveraging a mix of global corporates and agile mid-market firms across manufacturing, energy, tourism, and professional services. With the Spring Statement approaching, businesses remain focused on strategic planning to sustain growth despite economic pressures.
