Business confidence in the East Midlands remains steady, says report
Business confidence in the East Midlands remained steady at 38% in December, according to the latest Lloyds Business Barometer.
While businesses’ optimism in their prospects fell by 13 points to 39%, their confidence in the broader economy increased by 12 points to 36%.
Despite the drop in trading optimism, the overall confidence figure for the region stayed at 38%.
In terms of staffing, 33% of businesses in the East Midlands expect to increase their workforce over the next year, up by eight points from the previous month.
Looking ahead, the top priorities for growth over the next six months include investing in staff training (44%), developing new products or services (30%), and introducing new technology (29%).
Nationally, business confidence in the UK dipped by two points to 39% in December, although it remains above the long-term average of 29%.
While confidence in the wider economy rose five points to 31%, companies’ confidence in their own trading prospects fell to 47%. London showed the highest confidence at 53%, followed by the North West at 50%.
In the sector breakdown, the service sector saw a decline in confidence, falling 11 points to 35%. However, manufacturing and retail saw improvements, with manufacturing rising 10 points to 42% and retail climbing to 43%.
Retail’s trading prospects also improved for the first time in three months. Confidence in the construction sector remained steady at 41%.
Dave Atkinson, regional director for the East Midlands at Lloyds, said: “The East Midlands has bucked the national trend this month, with confidence holding firm. And it’s incredibly encouraging to more businesses setting out plans to hire in the year ahead – a move that will benefit their local communities and the local economy, as well as their own operations.
“As businesses look ahead to the new year, we’ll continue to be by their side with our support to help them make the most of any new opportunities that arise.”
Hann-Ju Ho, senior economist, Lloyds Commercial Banking, said: “In the last few months overall confidence has fallen incrementally, and in December the trend continued as it fell by 2 points to 39%. While there hasn’t been any significant one-month change, confidence has gradually drifted from the summer’s highs.
“The key difference in this month’s results is that the fall in confidence is driven by firms’ own trading prospects which have proven to be resilient over the last quarter. There was, however, more positivity regarding the wider economy and, going into 2025, this offers some hope if companies continue to feel confident about the economy.
“Elsewhere, although confidence fell in the services sector, this was partly offset by improvements in manufacturing and retail – which could be a significant for this time of year.”
