Business confidence falls in East Mids

Business confidence in the East Midlands fell four points during April to 21 per cent, according to the latest Business Barometer from Lloyds Bank Commercial Banking.

Companies in the East Midlands reported lower confidence in their business prospects at 21 per cent and lower economic optimism at 20 per cent.

Together, this gives an overall confidence of 21 per cent, which is four points below last month’s figure of 25 per cent.

Companies’ hiring intentions showed that a net balance of 16 per cent of businesses in the region expect to hire more staff during the next year, down five points on last month.

Nationally, overall confidence remained unchanged at 32 per cent, although firms’ confidence in their own business outlook fell five points to 31 per cent.

The region is finely balanced on the issue of Brexit, with a net balance of one per cent of businesses saying they felt that the UK’s exit from the European Union was having a negative impact on their expectations for business activity. A net balance of five per cent felt it was having a positive effect a month ago.

Kelly Green, regional director for the East Midlands at Lloyds Bank Commercial Banking, said: “Continued uncertainty has weighed heavy on businesses in the East Midlands, with the region’s economic optimism sliding for a second consecutive month following February’s high.

“But despite the downward trend, the region remains cautiously optimistic overall. Most firms expect their business activity to either stay the same or increase, while significantly more businesses expect to hire more staff than see headcount fall.

“This cautious confidence to invest in the future despite economic and political uncertainty shows how resilient that businesses in the region are and shouldn’t be overlooked.”

The Business Barometer questions 1,200 businesses monthly.