Snap election fails to dampen North East business confidence

Confidence among North East businesses increased over the last six months, according to a new report.

The latest Business in Britain research from Lloyds Bank, which is based on data gathered after the snap election had been called, placed the region’s confidence index at 33%.

The confidence index – an average of the sales, orders and profits that respondents expect to see over the next six months – stood at 22% in January.

The North East was found to be more optimistic than Yorkshire and the Humber, but less so than Wales.

Lloyds Banking Group’s regional director for SME in the North East, Leigh Taylor, said: “Overall confidence in the North East has increased since our last survey in January.

“The fact that this has happened despite the political uncertainty from a snap election is a positive sign for underlying confidence in the region.”

Overall, the proportion of the region’s companies that named weaker UK demand and political uncertainty as potential threats rose, to 12% and 22% respectively. However, both have changed little in comparison to this time last year.

The share of North East firms experiencing difficulty in hiring for skilled roles in the last six months increased to 49%. The figure, up from 33% in January, represents a 10-year high.

The number of businesses reporting challenges when recruiting unskilled labour also rose, from 15% to 32%.

Leigh added: “Despite hurdles in recruiting both skilled and unskilled labour, North East businesses also anticipate sales, profits, and staffing levels to rise.”

Lloyds Bank’s Business in Britain report surveys more than 1,500 companies in the UK.