North East businesses among least optimistic in country
North East businesses were among the least confident in the UK last month, according to Lloyds Bank.
Companies surveyed for the latest Business Barometer reported lower confidence in their business prospects at 26 per cent, and lower economic optimism at six per cent.
Together, this gives an overall confidence of 16%, which is 26 points lower than last month’s figure of 42%.
Despite the falls, companies’ confidence remains positive and a net balance of 7% of businesses in the region now expect to hire more staff during the next year.
The figures mean that in the first quarter of 2018, North East firms overall confidence averaged 25%t, the fourth lowest in the UK.
Nationally, overall confidence in March fell one point to 32%, driven by a dip in firms’ economic optimism.
Mike Mullaney, regional director for the North East at Lloyds Bank Commercial Banking, said: “Uncertainty is weighing heavy on confidence across the North East and making it hard for businesses to plan for the future.
“As a result, North East companies were among the least confident in the country in March, both in terms of their own business prospects and the economy as a whole, despite seeming more bullish just a month ago.
“However, we know that businesses across the region are working to make the most of opportunities for growth and their readiness to invest in more staff this year proves that.”
Overall confidence was highest among businesses in London, at 55%, followed by the West Midlands at 42% and the North West at 39%.
Businesses in the South East and Wales were least confident, both with an overall confidence of 13%.
Nationally, overall confidence in March was strongest in the transport and manufacturing sectors.