Business confidence in the East Midlands rose 14 points during February to 52%, according to the latest Business Barometer from Lloyds Bank Commercial Banking. 

Companies in the East Midlands reported higher confidence in their own business prospects month-on-month, up 13 points to 52%. When taken alongside their optimism in the economy, up 15 points to also reach 52%, this gives a headline confidence reading of 52% (vs. 38% in January) – the third strongest level in the UK in February after Scotland (56%) and the North East (54%).  

A net balance of 35% of businesses in the region expected to increase staff levels over the next year, up nine points on January.  

East Midlands businesses identified their top target areas for growth over the next six months as evolving their offering, including introducing new products and services (42%), investing in their team (39%), and entering new markets and introducing new technology (both 31%). 

The Business Barometer, which surveys 1,200 businesses monthly, provides early signals about UK economic trends both regionally and nationwide.   

National picture  

Overall, UK business confidence dipped two points in February to 42%, driven by softening confidence from firms in both their own trading prospects (49% vs. 51% in January) and the wider economy (34% vs. 37% in January). However, companies’ hiring intentions increased to the highest level since May 2022, with 36% of firms intending to increase staff levels over the next 12 months, up three points on the month before.   

Sector Insights 

There was a mixed picture for sectors this month. Confidence fell in manufacturing (nine points to 40%) and construction (seven points to 38%) respectively, although results remain higher than the same time last year. In contrast, the dominant services sector was unchanged compared to January at 45%, exceeding all months of 2023 except for November. Retail confidence was broadly steady, dipping one point to 41%. 

Dave Atkinson, regional director for the East Midlands at Lloyds Bank Commercial Banking, said: “It’s great to see an uplift in East Midlands business confidence this month, building on January’s optimistic outlook.  

“And it’s particularly good to see so many businesses either looking to invest in their team or grow their workforce over the months ahead. This reflects a focus on skills and employment in initiatives like the Loughborough Town Deal, and Nottingham’s newly unveiled Economic Plan, and will have benefits that will cascade across communities.    

“Whatever businesses’ plans for the months ahead, we’ll continue to be by their side to help translate ideas, innovation and opportunity into growth.”   

Hann-Ju Ho, Senior Economist, Lloyds Bank Commercial Banking, said: “This month’s data still reflects a positive mood among businesses despite a marginal fall in overall confidence. Firms appear to be upbeat about their prospects and the economy, supporting their positive staffing expectations.  

“Looking at the sectors, there is a mixed picture. There was a slight fall in confidence reported in the manufacturing and construction sectors, while retail and services stood their ground – remaining unchanged compared to January’s figures. But despite the manufacturing and construction fall, businesses are still showing high levels of confidence.  

“The split across the regions also provides reason to view the dip in confidence at the broader UK level cautiously. Six regions have reported an increase in confidence while the other six have reported a decrease. So, scratching the surface, we see a story that continues to show a more positive outlook for the year ahead.”  

The last legal step to establish the East Midlands Combined County Authority (EMCCA) has been signed and made into law today (Wednesday 28 February). Jacob Young MP, Levelling Up Minister, yesterday signed the regulations that allow for EMCCA to be created. It means that residents across the area will get to vote for the very-first East Midlands Mayor, with elections taking place on Thursday 2 May 2024. The new combined county authority is all thanks to a devolution deal, which will see the region benefit from a £1.14bn investment package, spread over a 30-year period, alongside devolved powers around transport, housing, skills and adult education, economic development and net zero. Cllr Barry Lewis, Leader of Derbyshire County Council, said: “The passing of this final piece of Government legislation is an historic milestone for Derbyshire and the wider region. “It marks the moment when the East Midlands Combined County Authority comes into existence, bringing a £1.14bn devolution deal to our region to improve people’s lives through better housing, improved transport and new job opportunities. “In many ways it’s only the beginning of this exciting journey and more benefits and funding are already starting to flow – such as the government’s announcement of £1.5 billion local transport funding for the new East Midlands Mayor. “Year-on-year the new combined county authority will bring even more funding to our region through a strong, collective voice and a national platform.” Cllr Baggy Shanker, Leader of Derby City Council, said: “The establishment of a combined county authority for our region is good news for the people of Derby. Devolution is bringing more powers and much-needed extra funding to a local level, replacing part of what we have lost due to austerity. “I look forward to working with the combined county authority and our region’s first-ever Mayor to deliver transformational projects across the city of Derby and the wider region.” Ben Bradley MP, Leader of Nottinghamshire County Council, said: “Whilst this is a really important step in the creation of the authority, what is more important are the very real benefits to the people of Derbyshire and Nottinghamshire which will be realised as a result of the investment EMCCA will attract. “Having a single body working directly with government will give the region a voice and profile it has never had before and will bring opportunities that will strengthen the East Midlands for future generations.” Cllr David Mellen, Leader of Nottingham City Council, said: “This is an historic moment for the region, and I am proud to say we have delivered this deal for Nottingham and the millions who live across the whole devolution area. “The extra funding coming to the area and the devolved powers will make a huge difference to the region, bringing in more investment in skills and jobs and housing. This is all about improving local people’s lives and creating new opportunities for our communities across the East Midlands. “We are already working closely together to steer the development for the new combined county authority and we will continue to work closely to give us a stronger voice in the region and across the whole country.” Plans for East Midlands devolution are similar to those already in place in other mayoral regions, like the West Midlands and Greater Manchester, and it is estimated that the region will unlock around £4bn of funding over the coming years. The East Midlands devolution deal, agreed with Government ministers in 2022, will see Derbyshire, Nottinghamshire, Derby and Nottingham benefit from a £1.14 billion investment fund. All four councils approved the creation of EMCCA in December. In October 2023, the Government announced around £1.5 billion in transport funding for the East Midlands Mayor. Thanks to devolution plans, the East Midlands has also been invited to establish an ‘Investment Zone’, which will attract £160 million of support over ten years, with tax incentives for businesses that will help boost economic growth right across the region. Government will continue to work with EMCCA and other partners to co-develop plans for the East Midlands Investment Zone – which will bring in hundreds of millions of pounds of private investment and create thousands of jobs – including priority development sites and specific interventions to drive cluster growth, ahead of final confirmation of the plans. £18 million has already been awarded to the area during devolution negotiations, which is being spent on improving local housing, transport and skills provision. Further investment for the region would also be provided through annual Whitehall budgets and spending reviews. The inaugural election for Mayor of the East Midlands will take place on Thursday 2 May 2024.

Researchers from the University of Nottingham’s Schools of Psychology and Medicine analysed survey data from 142 employees. The results have been published in PLOS ONE. Elizabeth Marsh, PhD researcher from the School of Psychology, led the mixed methods study. She said: “As work is increasingly mediated by digital technology we wanted to find out the impact this is having on people’s health and whether there are ways to mitigate this. We found that being mindfully and confidently digital should be considered important elements of living a healthy digital working life in the 21st century.” The participants in the study were surveyed about their experiences of the dark side effects of the digital workplace which were identified as; stress, overload, anxiety, fear of missing out and addiction and how these affected their health. The results showed that more digitally confident workers were less likely to experience digital workplace anxiety, while those with higher mindfulness were better protected against all of the dark side effects. Data from 14 interviews also indicated ways that digital mindfulness can help protect well-being. Dr Alexa Spence, Associate Professor of Psychology, said: “Digital workplace technologies like e-mail, instant messaging and mobile devices have been shown to contribute to perceptions of stress by employees and employees may experience stress when having to adapt to a constantly evolving digital workplace which can lead to burnout and poorer health.” Mindfulness is defined as a state of consciousness that involves paying attention in the present moment intentionally and non-judgementally. The study showed that employees who were more mindful were less exposed to adverse impacts of the dark side of the digital workplace. Elvira Perez Vallejos, Professor of Digital Technology for Mental Health, said: “The research shows that organisations need to consider how to manage digital workplace hazards alongside other psychosocial and physical risks in the workplace. Helping employees foster mindful awareness when working digitally could really help overall well-being.”