01 Apr EAST OF ENGLAND BUSINESS CONFIDENCE DIPS IN MARCH
Business confidence in the East of England fell 13 points during March to 39%, according to the latest Business Barometer from Lloyds Bank Commercial Banking.
Companies in the region reported lower confidence in their own business prospects month-on-month, down seven points at 44%. When taken alongside their optimism in the economy, down 20 points to 34%, this gives a headline confidence reading of 39%.
Despite the dip in confidence, East businesses reported plans to target new growth opportunities in the next six months, including introducing new technology (36%), diversifying into new markets (27%) and investing in their teams (26%).
The Business Barometer, which questions 1,200 businesses monthly, provides early signals about UK economic trends both regionally and nationwide.
A net balance of 34% of East businesses expect to increase staff levels over the next year, down eight points on last month.
Overall UK business confidence dropped 11 points during March, from 44% to 33%. Firms’ outlook on their future trading prospects (down from 45% to 34%) and optimism in the economy (down from 43% to 32%) both also fell by 11 points on February’s reading. The net balance of businesses planning to create new jobs decreased slightly, by six points to 32%.
Every UK region and nation reported positive confidence readings in March, with the exception of Wales which saw confidence drop from 29% to -5%. Only London (up 13 points to 60%), Yorkshire and the Humber (up six points to 57%) and the North West (up one point to 45%) reported a higher reading than last month, with London now the most optimistic region overall.
Dene Jones, regional director for East of England at Lloyds Bank Commercial Banking, said: ”What our latest data shows us is that our region’s businesses are not immune to the current geo-political and financial situation impacting sectors across the UK and beyond.
“What we know from the past two years is that businesses in the East have resilience in spades, and their intention to invest in new technology and boost skills within their own teams is testament to that. We’ll continue to be by the side of businesses as they face into headwinds and press on with targeting growth opportunities.”
From a sector perspective the impact of the war in Ukraine appears to have had the greatest impact on manufacturing and retail firms. Both sectors saw drops in confidence of 19% from February’s highs (to 35% and 28% respectively). From a manufacturing perspective confidence levels are now at their lowest since last summer, while retail has fallen to a one-year low.
In the other sectors, services dropped by six points (32%) while construction dropped eight points to 43%, but remained higher than at the start of the year.
