01 Feb EAST OF ENGLAND BUSINESSES RESILIENT IN JANUARY DESPITE WEAKER ECONOMIC OUTLOOK
Business confidence in the East of England fell by seven points during January to 38%, according to the latest Business Barometer from Lloyds Bank Commercial Banking.
While East of England firms’ confidence in their own trading prospects remained steady month-on-month at 46%, their optimism in the wider economy fell 14 points to 30%. Taken together, this gives a headline confidence reading of 38% (vs. 45% in December).
East of England businesses identified their top target areas for growth in the next six months as evolving their offering (38%), investing in their team (33%), and entering new markets (33%).
A net balance of 31% of businesses in the East of England also expect to increase staff levels over the next year, down two points month-on-month.
The Business Barometer, which surveys 1,200 businesses monthly, provides early signals about UK economic trends both regionally and nationwide.
National picture
Overall, UK business confidence rose nine points in January to 44% – its highest level since February 2022 and its strongest start to a year since 2016. Firms’ outlook on the overall UK economy rose ten points from 27% to 37%, while businesses’ optimism in their own trading prospects also climbed three points month-on-month to 51%.
Companies’ hiring intentions increased marginally, with 33% of firms intending to increase staff levels over the next 12 months, up four points on the month before.
London and the North East were the joint most confident parts of the UK in January – each posting a headline confidence of 62% – followed by the West Midlands (56%) and Yorkshire & the Humber (44%).
The East of England (38% in January vs. 45% December) and Northern Ireland (29% vs. 36%) were the only two regions to reporting declining levels of confidence. The majority of the data was collected before the December ONS inflation data was announced on January 17th.
Sector Insights
Three of the four sectors tracked in the Barometer reported rises in confidence. The most significant increase was in services which accelerated 15 points to 45%, up from December’s 16 point drop. Manufacturing confidence also increased to 49%, while construction rose eight points to a 10-month high of 45%. There was a more mixed picture in retail however, dipping three points to 41% with anecdotal evidence of weaker footfall and sales in December as shoppers hit the streets earlier than usual in November. Nevertheless, some companies still reported stronger sales over the festive period.
