Business confidence 'rises again' - report

New global trade agreements have helped boost North East business confidence and are catalysing fresh growth blueprints, a new study has revealed.

Lloyds says companies plan to invest in technology, expand into new markets and strengthen staff training after optimism rose for a second consecutive month in May.

The bank’s latest Business Barometer report says confidence across the region increased by six points to 65 per cent following the UK's negotiation of fresh trade deals with the EU, India and the US.

Firms’ belief in their own prospects and economic confidence increased by ten and two points respectively to 65 per cent.

The headline figure was the second-highest UK reading behind the East Midlands.

Nationally, the report – which surveys 1200 organisations every month – revealed business confidence was up 11 points to 50 per cent, its highest level since August last year.

Martyn Kendrick, Lloyds’ North East regional director, said: “Business confidence has risen for a second month in a row.

“It is particularly good to see it has been driven by a brighter outlook from businesses in both their own prospects and the wider economy.”

Hann-Ju Ho, Lloyds Commercial Banking senior economist, added: “The rise in confidence is driven by a sharp increase in economic optimism, reflecting the recovery in financial markets amid more promising prospects for global trade agreements.”

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