Firms’ hiring intentions impacted by dip in business confidence

The confidence of East Midlands companies in their own business prospects has fallen to its lowest point this year.

Business confidence in the East Midlands fell 11 points during June to eight per cent, according to the latest Business Barometer from Lloyds Bank Commercial Banking.

The confidence of East Midlands companies in their own business prospects fell 15 points to its lowest point this year at 10 per cent.

Businesses also report lower economic optimism, which fell eight points to five per cent, giving an overall confidence of eight per cent.

Businesses’ hiring intentions show that a net balance of 13 per cent of businesses in the region expect to hire more staff during the next year, down five points on last month.

Across the UK, overall confidence grew three points to 13 per cent as firms’ confidence in their own prospects grew five points to 22 per cent, while their economic optimism also grew by three points to five per cent.

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

Amanda Dorel, regional director for the East Midlands at Lloyds Bank Commercial Banking, said: “Last month, business confidence in the East Midlands jumped to its highest level this year.

“Although we’re now seeing this confidence slow slightly, and it is disappointing to see this impact on hiring intentions, we remain by the side of businesses and are committed to help the region’s firms fulfil their growth plans.”

Concerns about Brexit eased slightly across the region and a net balance of seven per cent of businesses now say they feel the UK’s exit from the European Union is having a negative impact on their expectations for business activity, compared to 20 per cent a month ago.