Survey finds confidence is on the rise

Business confidence in the North East rose again during April to 37%, according to the latest survey from Lloyds Bank Commercial Banking.

The monthly business barometer findings marks a third month of rising confidence and – reaching highest level recorded in the region since February 2018.

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

When it comes to jobs, a net balance of 20% of businesses in the region say they expect to increase staff levels over the next year.

Firms’ confidence in their own business prospects rose by 14 points to 26%, and their optimism in the economy increased by 15 points to 32%.

Steve Harris, regional director for the North East at Lloyds Bank Commercial Banking, said: “Business confidence in the North East has surged again – a clear reflection of the positive impact the reopening of both hospitality and retail is having on businesses.

“It’s also encouraging to see that more firms are planning to increase staffing levels this year in another sign that we are on the road to recovery.”

Confidence increased in all sectors, with manufacturing and retail confidence levels at three-year highs.

Manufacturing stood out as the most positive sector (40%) – likely reflecting strong global demand and despite ongoing supply chain issues. Retail confidence jumped to 39%, while construction confidence also increased to 28%.

Services confidence rose to 25%, which was also the highest it has been since 2018.