Business confidence on the rise among North East companies, claims Business Barometer

The North East has seen business confidence rise by seven points since June to 35%, according to the latest Business Barometer from Lloyds Bank Commercial Banking.

The barometer shows that companies in the North East have reported higher economic optimism at 41%, although firms’ confidence in their own business prospects fell three points to 29%.

Together, this gives an overall confidence of 35%, which is seven points above last month’s figure of 28%.

A net balance of 32% of businesses in the region expect to hire more staff during the next year, which is also up seven points on last month.

Nationally, overall confidence fell six points to 29%, as firms’ optimism about the economy fell, weighing down their confidence in their own business prospects.

The Business Barometer questions 1,200 businesses monthly and provides early signals about UK economic trends both regionally and nationwide.

Leigh Taylor, regional director for the North East at Lloyds Bank Commercial Banking, said: “Overall confidence in the North East is above the national average, and is based on rising optimism about the economy overall, which also bucks the trend across the UK.

“We are seeing significant investment across the region at the moment, particularly in the manufacturing sector where two major projects have been announced this month alone.

“With an increasing number of other local firms looking to hire more staff in the next year, I’m cautiously optimistic that businesses’ own confidence will rise in the months to come.”

Outside London, where overall confidence is at 40%, the North East is the joint most confident region, alongside the North West, and Yorkshire.

Hann-Ju Ho, senior economist at Lloyds Bank Commercial Banking, added: “Increased global trade tensions and Brexit uncertainties are likely to have weighed on confidence, but it’s still near the long-term average and so there’s no need to hit the panic buttons.”