– Business confidence in the East Midlands rose six points to 46% in June
– Firms’ optimism in their own trading prospects rose two points to 42%, while their optimism in the economy climbed nine points to 50%
– Overall UK confidence fell nine points to 41%, but remained above the long-term average
Business confidence in the East Midlands rose six points during June to 46%, 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 two points at 42%. When taken alongside their optimism in the economy, up nine points to 50%, this gives a headline confidence reading of 46% (vs. 40% in May).
A net balance of 45% of businesses in the region also expect to increase staff levels over the next year, up 24 points on last month.
Looking ahead to the next six months, East Midlands firms identified their top target areas for growth as introducing new technology (42%), investing in their teams, for example through training (37%) and entering new markets (33%).
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 fell nine points in June to a net balance of 41%. However, this was consistent with levels seen during Q1 2024, before the sharp rise in May, and remained above the long-term average (28%).
While businesses reported lower confidence in both their own trading prospects, down 10 points to 44%, and the economy, down seven points to 39%, both remained robust.
The East Midlands was the third most confident UK nation or region in June, after Yorkshire and the Humber (48%) and the North East of England (47%).
Sector Insights
Results across the sectors were mixed in June as three of the four sectors saw a decline in trading prospects. Construction fell 16 points to 42% and there were other notable decreases in retail (down 14 points to 35%) and services (down 11 points to 46%). Manufacturing however, bucked this trend, increasing by two points to 51%.
Dave Atkinson, regional director for the East Midlands at Lloyds Bank Commercial Banking, said: “It’s great to see East Midlands business confidence continue to grow, and now sit above the national average.
“Our region’s businesses are setting out clear growth plans – from hiring staff to introducing new technology. Delivering these plans will, in many cases, require fresh investment. We’ll continue to be by their side, providing both financial backing and guidance to help them get the most out of the steps they’re taking.”
Hann-Ju Ho, Senior Economist, Lloyds Bank Commercial Banking, said: “These results suggest a slight drop in business confidence in June as firms’ trading outlook and economic optimism fell below levels seen in recent months. However, these results are still broadly in line with the positive readings we were seeing towards the start of the year.
“Fewer businesses indicated that their prices would increase in the next few months, which chimes with last week’s fall in inflation figures. Meanwhile, there was a mixed set of results seen across the sectors, but following last month’s increase, confidence fell in construction as well as retail and services”.