Business confidence in the East Midlands fell nine points during September to 34%, 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 five points at 42%. When taken alongside their optimism in the economy, down 14 points to 26%, this gives a headline confidence reading of 34% (vs. 43% in August).
Looking ahead to the next six months, East Midlands businesses identified their top target areas for growth as investing in their team (41%), for example through training, introducing new technology (40%) and evolving their offering, for example by introducing new products or services (39%).
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 12 points in September to 42%.
Firms’ confidence in their own trading prospects fell 12 points to 51%, and their optimism in the wider economy fell 11 points to 33%.
The North East was the most confident UK nation or region in September, climbing 13 points to 68%, followed by London (57%).
Sector insights
Firms across manufacturing, construction, retail and services all saw confidence fall this month. The biggest change was in manufacturing with a decline of 31 points to 31%, a two-year low. Retail sentiment fell 17 points to 40%, its lowest level in four months.
Similarly, confidence in the service sector fell six points to 47%, the lowest reading since April. Construction continued to decline for the fourth consecutive month, dropping 5 points to 35%.
Dave Atkinson, regional director for the East Midlands, said: “Despite this month’s results, it’s encouraging to see East Midlands businesses continue to identify new areas for growth.
“Investment in teams and technology, in particular, can pay long-term dividends – making firms even more resilient and boosting their ability to capitalise on new opportunities as they arise. We’ll continue to be supporting local businesses as they take their next steps.”
