Lloyds Bank’s Business Barometer for February 2019 shows:
- Overall confidence for firms in the East of England remained unchanged at six per cent this month, following a slight dip in January
- Firms’ confidence in their own business prospects fell by two points to 15 per cent
- However, hiring intentions jumped 16 points with a net balance of eight per cent of firms now expecting to expand their workforce in the next 12 months
Companies in the region report a slight drop in confidence in their business prospects at 15 per cent, compared with 17 per cent in January. When combined with their views on the economy overall, this gives an overall confidence of six per cent.
Despite this, businesses’ hiring intentions rose by 16 points, with a net balance of eight per cent of businesses in the region now expecting to hire more staff during the next year.
Across the UK, overall confidence fell 15 points to just four per cent as firms’ optimism about the economy and confidence in their own prospects slumped.
Firms’ confidence in their own trading prospects fell 14 points to 13 per cent while economic confidence fell by 15 points to minus five per cent.
The Business Barometer questions 1,200 businesses monthly and provides early signals about UK economic trends both regionally and nationwide.
Steve Elsom, regional director for the East of England at Lloyds Bank Commercial Banking, said: “This month’s Business Barometer demonstrates the resilience of East of England firms. While business confidence dropped by an average of 15 points across the UK, confidence in the East of England held steady at four per cent.
“Perhaps more importantly, a growing number of companies are looking to increase their staff numbers over the next 12 months.
“We are by the side of positive businesses looking to grow like this, and recently pledged to lend up to £1.7bn in 2019 to companies of all sizes and sectors in the East of England.”
Across the region, a net balance of 27 per cent of businesses said they felt that the UK’s exit from the European Union was having a negative impact on their expectations for business activity, up 14 points on a month ago.
Regional picture
Businesses in the North West showed the most confidence, at 12 per cent, ahead of the West Midlands (11 per cent) and the North East (seven per cent).
Those in Wales were the least confident, with an overall confidence of minus two per cent, six points below the national average.
Hann-Ju Ho, Senior Economist, Lloyds Bank Commercial Banking commented: “Political uncertainty has clearly affected business confidence across the UK, but the underlying economy remains resilient and is able to absorb short-term volatility.
“The modest rise in optimism at the start of the year was no more than a blip as uncertainty continues to impact on business confidence. The results suggest that near-term economic growth prospects have moderated further, but there is potential for a recovery further out should uncertainties subside.”