East of England confidence falls in March

Companies in the region reported lower confidence in their own business prospects month-on-month, down 24 points at 50%. When taken alongside their optimism in the economy, down 41 points to 7%, this gives a headline confidence reading of 29% (vs. 61% in February).

Looking ahead to the next six months, businesses in the East identified their top target areas for growth as evolving their offering, for example by introducing new products or services (59%), investing in their team, for instance through training (36%), and entering new markets (32%).

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. This data was gathered between the 3rd – 17th March, ahead of the Spring Statement.

Overall, UK business confidence was 49% in March – the same as in February.

While firms’ optimism in their own trading prospects held steady at 57%, their confidence in the wider economy dropped one point to 40%.

The West Midlands and London were the joint most-confident of any UK nation or region in March (both 62%), followed by the North West (59%).

Retail confidence rose seven points to 58%, a post-pandemic high, reflecting positive trading prospects.

In contrast, the manufacturing sector saw the largest decrease in business confidence this month, declining 12 points to 39%, due to increased concerns about supply chain disruptions. Construction firms also saw a decline to 48% and businesses in the service sector saw confidence decline to 47%.

Kirsty Sadler, regional director for the East of England at Lloyds, said: “Despite confidence falling this month, it’s encouraging to see that firms still have clear plans for future growth, focusing on evolving their offering and investing in their teams.

“As always, we’ll be working with the East’s businesses to provide on-the-ground support as they look to navigate whatever the future has in store for them.”

Hann-Ju Ho, Senior Economist, Lloyds Commercial Banking, said: "Business confidence remained steady this month, suggesting that UK companies may have been waiting to see the impact of government decisions at home and globally. Despite this, today's data continues to reflect a positive growth trend in the UK economy. With confidence maintaining last month’s high, business leaders are optimistic, noting that investing in their development and workforce will position them well to seize future growth opportunities."