North East businesses 'drop in confidence' with Brexit talks

Business confidence in the North East has fallen 17 points during May to minus-five per cent.

This is according to the latest Business Barometer from Lloyds Bank Commercial Banking.

Companies in the North East report lower confidence in their business prospects at three per cent, compared with 24 per cent in April 2019.

Across the region, a net balance of 25 per cent of businesses say they feel the UK’s exit from the European Union is having a negative impact on their expectations for business activity, up six points on a month ago.

Kelly Green, regional director for the North East at Lloyds Bank Commercial Banking, said: “Confidence in the North East has seen a drop this month, as it has across the UK overall.

“We’re always by the side of businesses to help them navigate through various challenges presented. We’ve committed to lend up to £700m to support North East firms in 2019, and we’ll continue to offer our advice in developing their strategies for future growth.”

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

Across the UK, overall confidence slipped four points to 10 per cent as firms’ confidence in their own prospects fell six points to 17 per cent, while their economic optimism dropped two points to two per cent.

Businesses in Yorkshire and the Humber show the most confidence, at 23 per cent, ahead of the West Midlands (21 per cent).

Hann-Ju Ho, senior economist, Lloyds Bank Commercial Banking, concluded: “Overall business confidence continues to sit below the long-term average.

“A slight dip in confidence this month appears largely to reflect companies’ assessment of their own trading prospects for the coming year, and the anticipated impact of the UK leaving the EU.

“It’s encouraging to note that while we are seeing uncertainty impacting business confidence overall, optimism regarding the wider economy remains broadly steady.”