Business confidence in the East of England rose 26 points during October to 62%, 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 20 points at 70%. When taken alongside their optimism in the economy, up 33 points to 55%, this gives a headline confidence reading of 62% (vs. 36% in September 2026).
East of England firms’ optimism in the economy was driven by stronger customer or market demand (58%), improving interest rates or financial conditions (49%) and better economic data or news (38%).
A net balance of 38% of businesses in the region expect to increase staff levels over the next year, up nine points on last month.
Business confidence in the East of England now sits above the 12-month average of 44%, with October marking its highest figure of this year.
Looking ahead to the next six months, businesses in the East identified their top target areas for growth as evolving their offering by introducing new products or services (55%), introducing new technology such as AI or automation (50%) and entering new markets (42%).
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.
Graham Fitzgerald, Regional Director for the East of England at Lloyds, said: “It’s been a good month for businesses in the East of England, with an uptick in overall confidence. The fact firms’ confidence in their own trading outlook and the wider economy have both risen puts them in a good position to pursue their plans for growth in the coming months.”
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Overall, UK business confidence rose six points to 47% in October, sitting above the long-term average of 30%.
The rise follows September’s reading of 41%. October has also seen an improvement in firms’ own trading outlook and economic optimism, despite continued uncertainty from the Middle East conflict.
Optimism in the wider economy rose nine points to 40%, compared to a 12-month average of 37%. The drivers that led to the increase included stronger customer demand, better economic news, and improving financial conditions.
Businesses’ own trading outlook increased five points to 55%, compared to a 12-month average of 56%. Nearly two thirds of firms (63%, up six points from September) expect an increase in activity over the year ahead, while those expecting a decrease in activity rose by one point to 8%. Among firms expecting stronger activity, the main drivers were stronger customer demand, increased investment in technology and improved supply chain conditions.
Fiamma Morton, Managing Director, SME Banking at Lloyds, said: “I hear from business owners every day about their determination to keep moving forward. There are still challenges, but increasingly the conversation is about what comes next: where new customers will come from, how technology can make the business better, and where investing today might create an opportunity tomorrow.
“There are careful choices to make. Cost pressures haven’t gone away, so investment needs to work hard. But the ambition is absolutely there. Businesses are continuing to find ways to grow, adapt and make their next move.”
East of England business confidence increases as economic optimism rises
