Business confidence takes regional dip

Business confidence across northern England declined in June, according to the latest Business Barometer from Lloyds, with the North East and Yorkshire showing differing levels of optimism.

In the North East, confidence fell sharply by 11 points to 54 per cent. 

Despite this, firms remained optimistic about their own trading prospects, which rose 14 points to 79 per cent. 

However, confidence in the wider economy dropped 37 points to just 28 per cent.

Despite this, 54 per cent of North East businesses expect to increase staffing over the next year, up slightly from May. 

Martyn Kendrick, regional director at Lloyds, said: “While overall confidence in the North East dipped this month, it remains above the UK average. 

“And local businesses are increasingly optimistic when it comes to their own business prospects – a reflection of the hard work they’ve put in to drive growth and build resilience.   

“As firms look ahead to the next steps, we’ll continue to provide our support to help them achieve their ambitions.” 

Meanwhile, Yorkshire’s business confidence also dipped, though only falling three points to 49 per cent.

Businesses showed a modest increase in optimism about their own prospects, rising two points to 61 per cent, but confidence in the wider economy dropped nine points to 37 per cent. 

Martyn added: “While overall confidence in the region has dipped slightly, it’s encouraging to see that Yorkshire businesses are increasingly optimistic when it comes to their own trading prospects. 

“Firms’ focus on steps such as investing in people, innovating in products and services, and exploring new markets reflects the strength of the region’s ambition, and we’ll be ready to support Yorkshire’s businesses as they look to translate this into further growth.”

Across the UK, overall business confidence rose slightly by one point to 51 per cent, boosted by gains in manufacturing and retail sectors, though confidence slipped in contruction and services.

Wales remained the most confident region, followed by London.

Hann-Ju Ho, senior economist, Lloyds Commercial Banking, added: “Business confidence has continued its positive momentum, following the significant gains we saw in May.

“In particular, the sustained rise in hiring intentions suggests that while firms do still face challenges, they may be starting to look beyond short-term staffing needs and preparing for future growth.”

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