Business confidence in the East of England fell nine points during August to 44%, according to the latest Business Barometer from Lloyds.
Companies in the East of England reported higher confidence in their own trading outlook month-on-month, up eight points at 65%. When taken alongside their optimism in the economy, down 26 points to 22%, this gives a headline confidence reading of 44% (vs. 53% in July 2026).
Despite this, firms in the region reported that stronger customer demand (81%) was driving their increased confidence in their own trading outlook.
Looking ahead to the next six months, East of England businesses identified their top target areas for growth as investing in their team, for example, through training (57%), entering new markets (51%), and introducing new technology, such as AI or automation (47%).
Business confidence in the East of England still sits above the 12-month average of 42%, with its highest figure of 57% in March 2026.
The Business Barometer, which surveys 1,200 businesses monthly and which has been running since 2002, provides early signals about UK economic trends both regionally and nationwide.
Kirsty Sadler, regional director for the East of England at Lloyds, said: “While there’s been a dip in terms of overall business confidence in the East of England, it’s encouraging that our firms are reporting resilience when it comes to their own trading outlook.
“The stronger customer demand that many have also cited shows that there are still causes for optimism within our regional business community.
“Many businesses have got clear priorities in mind as they look to navigate the coming months, and we’ll be working to help businesses with their plans for the rest of this year.”
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Overall, UK business confidence increased four points in August to 53%, the highest reading since the start of the Middle East conflict in March (55%) and above the 12-month average of 47%.
This was driven by a second month-on-month increase in economic optimism, up 18 points since June.
Optimism in the wider economy rose seven points to 49%, compared to a 12-month average of 37%. Of those surveyed, 64% said they were optimistic (up five points from July) in the wider economy, while those who felt pessimistic decreased by two points to 15%. The main factors cited by firms who felt more positive included stronger customer demand and improving financial conditions.
Businesses’ own trading outlook improved two points to a three-month high of 58% in August, compared to a 12-month average of 56%. Sixty-six percent of firms (up one point from July) expect an increase in output over the year ahead, while those expecting a decrease in activity reduced by one point to 8%. Among firms expecting stronger activity, the main factors were stronger customer demand, increased investment in capacity or tech and improved supply chain conditions.
Amanda Murphy, CEO Lloyds Business and Commercial Banking, said: “It’s encouraging to see business confidence rise for the second month in a row, reaching its highest level since March.
“While international firms remain more confident, it’s good to see domestic companies register a strong month-on-month increase.
“Overall, businesses are reporting stronger customer demand, greater optimism about the wider economy and growing confidence in their own trading outlook, all of which will be helping to support investment and growth plans.
“While businesses continue to operate in a challenging environment, easing cost pressures and fewer firms expecting to raise prices in the coming year, should allow them to focus less on managing headwinds and more on pursuing growth.”
