Business confidence in the East Midlands fell seven points during April to 36%, according to the latest Business Barometer from Lloyds.
Companies in the East Midlands reported lower confidence in their own business prospects month-on-month, down 12 points at 38%. When taken alongside their optimism in the economy, which held steady month-on-month at 35%, this gives a headline confidence reading of 36% (vs. 43% in March).
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 (44%), investing in their team, for instance through training (39%) and introducing new technology (35%).
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 ten points in April to 39%.
Firms’ optimism in their own trading prospects dropped seven points to 50%, while their confidence in the wider economy fell 13 points to 28%.
The North East was the most confident UK nation or region in April (59%), followed by the West Midlands (53%) and the North West (52%).
Sector insights
Confidence fell across the four broad sectors. Manufacturing confidence remained broadly unchanged from last month, falling by one point to 38%, while the construction sector saw the largest decrease in business confidence this month, declining 22 points to 26%. Retail confidence also fell by 13 points down to 45% and the service industry fell seven points to 40%, both now at three-month lows.
Dave Atkinson, regional director for the East Midlands at Lloyds, said: “While business confidence in the East Midlands has dipped this month, it’s encouraging to see firms remain focused on the future, with many targeting innovation, skills development, and technology to drive growth.
“At Lloyds, we’ll continue to support firms in the region as they pursue these ambitions, helping them invest in their people and capabilities so they can fully capitalise on new opportunities ahead.”
