Business confidence in the East Midlands rose three points during August to 43%, according to the latest Business Barometer from Lloyds.
East Midlands’ confidence in their own business prospects held steady, month-on-month, at 47%. When taken alongside their optimism in the economy, which rose eight points to 40%, this gives a headline confidence reading of 43% (vs. 40% in July).
A net balance of 42% of businesses in the region also expect to increase staff levels over the next year, up 11 points on last month.
Looking ahead to the next six months, East Midlands businesses identified their biggest growth opportunities as evolving their offering, for example by introducing new products or services (47%), introducing new technology, such as AI and automation (46%), and investing in their team, for example through training and development (42%).
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 rose two points in August to 54%.
While firms’ confidence in the wider economy dropped three points to 44%, their optimism in their own trading prospects rose five points to 63%.
London was the most confident part of the UK in August (69%), followed by the East of England (64%).
Sector insights
Manufacturing firms saw confidence up 14 points this month, to 62%. This level was previously seen in 2015. Retailers also saw an increase in confidence this month, with levels up 13 points to 57%, a five-month high. However, construction firms confidence fell by five points to 40%, a four-month low, while confidence in service sector firms also fell eight points to 53%.
Dave Atkinson, regional director for the East Midlands at Lloyds, said: “Businesses across the East Midlands are showing real ambition, with many looking to new products, services, and technology to fuel growth. It’s particularly encouraging to see such a strong focus on developing their teams, which plays a critical part in building resilience and long-term success.
“As local firms look ahead to their next steps, we’ll be ready with our on-the-ground support.”
