Business confidence in the East Midlands rose 14 points during October to 48%, according to the latest Business Barometer from Lloyds.
Companies in the East Midlands reported higher confidence in their own business prospects month-on-month, up 27 points at 69%. When taken alongside their optimism in the economy, up one point to 27%, this gives a headline confidence reading of 48% (vs. 34% in September).
A net balance of 46% of businesses in the region also expect to increase staff levels over the next year, up six points on last month.
Looking ahead to the next six months, East Midlands businesses identified their top target areas for growth as introducing new technology, such as AI or automation (53%), investing in their team, for example through training and development programmes (50%), and evolving their offering, for example by introducing new products or services (44%).
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 climbed eight points in October to 50%. Firms’ optimism in their own trading prospects rose 11 points to 62%, while their confidence in the wider economy climbed six points to 39%.
The North East and West Midlands were the joint-most confident of any UK nation or region in October (both 62%), followed by London (60%).
Sector insights
October saw the manufacturing sector’s confidence increase by 31 points to 62%, indicating stronger momentum in the sector. Retail firms also reported a rise in confidence, with the figure increasing by 13 points to 53%.
Construction saw a confidence gain for the first time in five months, increasing 23 points to 58%. However, the service sector saw a decline for a third consecutive month, falling three points to 44%.
Dave Atkinson, regional director for the East Midlands, said: “It’s encouraging to see not only a rise in confidence, but stronger optimism from businesses in their own trading prospects.
“This reflects the work that local firms have done to boost their resilience and seek new opportunities – and it’s clear they’re not stopping here, with plans for technology, team and product investments on the horizon. We’ll continue to be ready with our support to help firms take these next steps for growth.”
