Business confidence in the East Midlands was the highest of any UK nation or region in May, according to the latest Business Barometer from Lloyds.
Companies in the region reported higher confidence in their own business prospects month-on-month, up 29 points at 67%. When taken alongside their optimism in the economy, up 31 points to 66%, this gives a headline confidence reading of 66% (vs. 36% in April).
A net balance of 44% 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 entering new markets (61%), evolving their offering, for example by introducing new products and services (50%) and investing in their team, for example through training (47%).
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 11 points in May to 50% – its highest level since August 2024.
Firms’ optimism in their own trading prospects strengthened six points to 56%, while their confidence in the wider economy also climbed 16 points to 44%.
The North East (65%) was the second-most confident UK nation or region in May.
Sector insights
Construction firms’ confidence rose to a nine-month high of 56%, while those in the service sector reported a one-year high of 54%. Manufacturing confidence also rose by two points to 40%. However, retail confidence fell by five points to 40%, the lowest level since January this year.
Dave Atkinson, regional director for the East Midlands at Lloyds, said: “It’s fantastic to see local confidence grow, to the extent that the East Midlands is now leading the country.
“We’ll continue to support local firms as they work to translate this outlook into action and long-term growth – whether that’s through advice, insight or lending.”
