East Midlands business confidence remains stable as investment intentions improve
A “year of stability” has encouraged businesses in the East Midlands to increase investment in the coming year, according to the latest Business in Britain report from Lloyds Bank.
Business confidence in the East Midlands – calculated as an average of respondents’ expected sales, orders and profits over the next six months – has remained the same as six months ago at 24 per cent.
However, the net balance of firms looking to grow investment in the next six months rose by 10 points to 10 per cent.
The region still faces challenges, with the share of firms that continue to report difficulties hiring skilled labour falling four points but remaining relatively high at 47 per cent.
Meanwhile, the number of firms expecting to increase wages increased by four points to 20 per cent, suggesting that companies are still taking a cautious approach to pay.
| Confidence Index | |||
| Region | Jan 2018 (%) | July 2017 (%) | Change (July – Jan) |
| North East | 38 | 33 | +5pts |
| North West | 31 | 26 | +5pts |
| West Midlands | 28 | 22 | +6pts |
| London | 25 | 20 | +5pts |
| East Midlands | 24 | 24 | – |
| South East | 24 | 28 | -4pts |
| Wales | 20 | 34 | -14pts |
| South West | 19 | 27 | -8pts |
| East of England | 18 | 22 | -4pts |
| Scotland | 17 | 19 | -2pts |
| Yorkshire & Humber | 15 | 23 | -8pts |
The Business in Britain report, now in its 26th year, gathers the views of more than 1,500 UK companies, predominantly small to medium sized businesses, and tracks a range of performance and confidence measures, weighing up the percentage of firms that are positive in outlook against those that are negative.
Kelly Green, regional director for the East Midlands at Lloyds Bank Commercial Banking, said: “Although business confidence in the East Midlands has remained static, local firms have a lot to be positive about in the new year.
“In the next six months, firms in the region are looking to increase investment and continue hiring new staff, signalling that many are focusing on growth. But they will need to plan carefully to navigate any challenges that the year ahead might bring.”
