Business confidence in the East Midlands fell 13 points during July to 40%, according to the latest Business Barometer from Lloyds.
Companies in the East Midlands were less optimistic about the economy, down 22 points month-on-month to 32%. When taken together with their confidence in their own business prospects, down six points at 47%, this gives a headline confidence reading of 40% (vs. 53% in June).
Looking ahead to the next six months, East Midlands businesses identified their top target areas for growth as entering new markets (37%), investing in their team, for example through training (35%), and evolving their offering, for example through new products or services (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 increased one point in July to 52% – its highest level since 2015 and the third consecutive monthly increase.
Firms’ optimism in their own trading prospects rose one point to 58%, while their confidence in the wider economy increased two points to 47%.
Wales was the most confident UK nation or region for the second month in a row (76%), followed by the North East (73%).
Sector insights
July saw the service sector’s confidence increase by 11 points to 61%, one of the main drivers behind this month’s overall increase in business confidence, indicating strong momentum in the sector. This gain was partially offset by declines in other areas, with retail firms down eight points, manufacturers down four points and the construction sector down six points.
Dave Atkinson, regional director for the East Midlands, said: “Despite a dip in overall business confidence, East Midlands firms are still focused on driving growth – whether that’s through entering new markets or investing in further training for their team. As they pursue their ambitions, we’ll continue to be with them every step of the way.”
