02 Jun East of England business confidence rises further in May
Business confidence in the East of England rose by four points during May to 46%, according to the latest Business Barometer from Lloyds.
While companies in the East reported lower confidence in their own business prospects month-on-month, down two points at 60%, their optimism in the economy rose nine points to 32%. Taken together, this gives a headline confidence reading of 46% (vs. 42% in April)
Looking ahead to the next six months, businesses in the region identified their top target areas for growth as entering new markets (39%), investing in their team, for example through training (38%) and introducing new technology, such as automation or AI (34%).
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.
National picture
Overall, UK business confidence increased 11 points in May to 50% – its highest level since August 2024.
Firms’ optimism in their own trading prospects strengthened six points to 56%, while their confidence in the wider economy also climbed 16 points to 44%.
The East Midlands was the most confident UK nation or region in May (66%), followed closely by the North East (65%).
Sector Insights
Construction firms’ confidence rose to a nine-month high of 56%, while those in the service sector reported a one-year high of 54%. Manufacturing confidence also rose by two points to 40%. However, retail confidence fell by five points to 40%, the lowest level since January this year.
Kirsty Sadler, regional director for the East of England at Lloyds, said: “As confidence rises, it’s great to see firms in the East have their sights set on further growth.
“For businesses in the region’s hospitality and tourism sectors, the coming months are likely to bring a surge in visitors as holidaymakers and families flock to enjoy our scenic countryside and coastline. As always, we’ll be ready to help businesses make the most of any new opportunities – whether that’s through lending or specialist financial tools to help manage working capital during peak periods.”
Hann-Ju Ho, Senior Economist, Lloyds Commercial Banking, said: “The rebound in business confidence suggests that firms might be in a stronger position for the next quarter. The rise in confidence is driven by a sharp increase in economic optimism, reflecting the recovery in financial markets amid more promising prospects for potential global trade agreements.
“Equally as encouragingly is the fact that trading prospects, wage expectations and hiring intentions also saw improvements this month. The positive trends in these metrics are important signals for potential growth and resilience in the business community and the wider economy. While we know that fluctuations do occur month on month and the global economic outlook remains uncertain, this month’s increase in confidence is an encouraging sign.”
