North East firms some of UK’s most ‘confident’

NORTH East businesses are more confident than most of their UK counterparts, new research suggests.

While the region’s overall confidence reading dipped by eight points between January and February, North East firms’ sentiment was behind only Scotland according to the Business Barometer from Lloyds Bank Commercial Banking.

The long running survey, which provides a monthly temperature test of companies in the region, showed the headline confidence reading of 54% with the overall UK figure at 42%.

Researchers said that a slim majority of regional company leaders expect to increase staff levels over the next year.

At 51% this was down three points on January, as respondents indicated their focuses over the next six months as: introducing new products or services (51%), entering new markets (38%), and introducing new technology, such as artificial intelligence (34%). Nationally, the survey showed hiring intentions at their highest level since May 2022 with 36% of business intending to recruit, up three points on January’s figures.

The services sector maintained its confidence reading at 45%, and retailers slid only one point to 41%. But manufacturers and construction firms saw sentiment eroded by nine points (40%) and seven points (38%) respectively.

Martyn Kendrick, regional director for the North East at Lloyds Bank Commercial Banking, said: “Although confidence has dipped slightly month-onmonth, the North East’s outlook is still optimistic, and brighter than nearly every other part of the UK. Looking ahead, it’s clear that innovation in products and services is on the agenda for many businesses. This constant evolution, coupled with a solid working capital management strategy, will help to ensure firms can fully capitalise on new demand in their market.”