Business confidence in the East Midlands fell 13 points during June to 53%, 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 14 points at 53%. When taken alongside their optimism in the economy, down 12 points to 54%, this gives a headline confidence reading of 53% (vs. 66% in May).
However, a net balance of 57% of businesses in the region expect to increase staff levels over the next year, up 13 points on last month.
Looking ahead to the next six months, the East Midlands businesses identified their top target areas for growth as investing in their team, for example by investing in training (67%), introducing new technology, such as AI or automation (49%) and entering new markets (27%).
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 June to 51%.
Firms’ optimism in their own trading prospects strengthened one point to 57%, while their confidence in the wider economy also rose one point to 45%.
Wales was the most confident UK nation or region in June (67%), followed by London (64%).
Sector highlights
Business confidence in the manufacturing and retail sectors saw significant gains this month, with 12-point rises in both sectors to 52%. For manufacturing, this demonstrates an 11-month high.
Construction and services however saw decreases in confidence, with falls by five points and four points respectively.
Dave Atkinson, regional director for the East Midlands at Lloyds, said: “While confidence has dipped this month, more than half of East Midlands businesses are planning to hire, and firms are clearly setting out intentions to invest in areas like new technology and expansion.
“This reflects a local business community that remains focused on growth – and we’ll continue to be supporting firms’ plans as they take the next steps to achieve their ambitions.”
