BUSINESS confidence in the East of England fell 14 points during April to 43%, according to the latest Business Barometer from Lloyds.
Companies in the East of England reported lower confidence in their own trading outlook month-on-month, down 10 points at 51%. When taken alongside their optimism in the economy, down 19 points to 34%, this gives a headline confidence reading of 43% (vs. 57% in March).
Looking ahead to the next six months, East of England businesses identified their top target areas for growth as entering new markets (49%), evolving their offering, for example by introducing new products or services (38%), and investing in their team, for example through training (36%).
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.
Amanda Murphy, CEO for Lloyds Business and Commercial Banking said: “Businesses told us their confidence fell as inflation pressures re-emerged, global uncertainty persisted and costs remained elevated. While sentiment declined, it remained above the long-term average, with nearly two-thirds expecting stronger output in the coming year. “UK businesses are resilient and adept at deploying strategies to defend growth in uncertain conditions. Over the past month, we’ve seen them opt for flexibility wherever possible. They’re building contingency into their short and medium-term plans, rather than expecting a rapid return to normal. Protecting margins has become more important. That means tougher cost scrutiny and a greater focus on balancing growth with profitability.
“In this environment, as with other recent market disruptions, we continue to observe that sustainable success comes from discipline, resilience and clarity about what really drives long term value.”
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Overall, UK business confidence fell 11 points in March to 44%.
Firms’ confidence in their own trading outlook fell six points to 54%, and their optimism in the wider economy dropped 17 points to 33%.
The East Midlands was the most confident UK nation or region in April at 53%, followed by London at 51% and the West Midlands at 49%.
Kirsty Sadler, regional director for the East of England at Lloyds, said: “Confidence levels may have fallen this month, but firms in the East of England still have clear targets in mind for the coming months.
“This appetite for strategic investment to drive growth is well illustrated by Ipswich Sports Club, which we recently worked with to finance the expansion of four new padel courts to generate new revenue. We’ll continue to be there for businesses as they bring their growth ambitions to life.”
