30 Nov Lloyds Bank Business Barometer: Essex firms eye growth as hiring intentions rise
Business confidence in the East of England rose five points during November to 38%, according to the latest Business Barometer from Lloyds Bank Commercial Banking.
Companies in the East reported remained confident in their own business prospects, with the reading unchanged month-on-month at 29%. When taken alongside their optimism in the economy, up 11 points to 46%, this gives a headline confidence reading of 38%.
The Business Barometer, which questions 1,200 businesses monthly, provides early signals about UK economic trends both regionally and nationwide.
When it comes to recruitment, a net balance of 29% of businesses in the region expect to increase staff levels over the next year, up 12 points on last month.
Overall, UK business confidence was buoyant in November at 40%, down just three points on October’s reading of 43%. Both firms’ confidence in their own trading prospects and optimism in the economy remained comfortably in positive territory, each dipping just three points month-on-month to 39% and 41% respectively.
All UK nations and regions had positive confidence readings in November, with three regions – the East of England, Wales and South East – reporting an increase on October’s data. Firms in London (down two points to 63%) remained the most confident for the third month in a row, followed by the North East (down 16 points to 45%), the West Midlands (down eight points to 42%) and East Midlands (down 13 points to 42%). A net balance of 30% of firms across the UK reported plans to create new jobs in the next 12 months, with hiring intentions strongest in London (41%), Wales (37%) and the South West (37%).
Dave Atkinson, regional director for the East of England at Lloyds Bank Commercial Banking, said: “It’s a testament to the fortitude of businesses in the East that their confidence has grown for a second month, with their optimism in the economy growing sharply even in the face of ongoing supply chain issues and rising inflation.
“Business investment is clearly high on the agenda, and firms’ plans to create new jobs will help boost the region as it prepares for growth in the coming year. As we head into what businesses will hope to be a busy festive period, we’ll be by their side to support on the opportunities that come their way.”
At a sector level, confidence slipped in manufacturing (42%), to its lowest since August, linked to the persistence of supply-chain disruptions, while it fell to a seven-month low of 28% in construction.
In contrast, the retail sector (45%) bucked the trend with a pickup in confidence, reflecting hopes for higher spending ahead as the festive period approaches. Services confidence (41%) fell slightly, with strong growth for financial & business services and communications offset by more downbeat responses from education, health and public administration.
Hann-Ju Ho, senior economist for Lloyds Bank Commercial Banking, said: ”Business confidence remains robust above the long-term average, but it dipped this month as economic optimism and trading prospects were affected by the persistence of rising costs and supply chain issues.
“Pay expectations remain elevated with a quarter of businesses anticipating rises of 3% or more in the next 12 months which will add to business costs, but it bodes well for staff facing into economic challenges.”
