Business confidence in the East Midlands was the joint-highest of any UK region or nation in July, 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 33 points at 75%. When taken alongside their optimism in the economy – which was 50%, the same as in June – this gives a headline confidence reading of 62% (vs. 46% in June). This was the joint-highest reading on the Business Barometer in July, alongside Wales (also 62%).
Looking ahead to the next six months, businesses in the East Midlands identified their top target areas for growth as investing in their team, for example through training (51%), evolving their offering, for example by introducing new products or services (41%) and entering new markets (36%).
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 climbed nine points in July to a net balance of 50% – the same as in May when confidence reached an eight-year high.
Businesses’ confidence in their own trading prospects rose 12 points to 56% – the highest reading since April 2017. Meanwhile, confidence in the economy climbed six points to 45%.
Sector insights
There was an improvement across all sector categories this month – most notably in retail which rose by 25 points to a post-pandemic high of 60%. There were also significant gains in manufacturing trading prospects, with the net balance increasing by 9 points to a two-year high. Services rose 10 points to 56%, while construction saw a more modest increase by 2 points to 44%
Dave Atkinson, regional director for the East Midlands at Lloyds Bank Commercial Banking, said: “It’s encouraging to see East Midlands confidence rise again to now lead the country, and particularly to see such a strong outlook for businesses when it comes to their own prospects.
“As firms put their growth plans into action, we’ll be by their side every step of the way, whether that’s through expert support through our on-the-ground teams, or specialist products to help them manage working capital while expanding their operations.”