Confidence steady before supply issues bite

BUSINESS confidence in the South East remained at 32 per cent during September, according to the latest Business Barometer from Lloyds Bank Commercial Banking.

Companies in the region reported higher confidence in their own business prospects month-on-month, up six points at 36 per cent.

When taken alongside their optimism in the economy, down six points to 28 per cent, this gives a headline confidence reading of 32 per cent.

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

Last month’s survey was conducted before fuel disruption and ongoing supply chain issues tightened their grip.

A net balance of 19 per cent of businesses in the region expected to increase staff levels over the next 12 months, up eight points on last month and the highest reading this year.

Overall, UK business confidence rose 10 points in September to 46 per cent, with all regions and nations reporting double-digit confidence levels.

The number of businesses planning to hire new staff more than doubled, from 18 per cent to 37 per cent, as firms look to increase headcount over the next 12 months.

Overall confidence in trading prospects rose by nine points to 43 per cent and firms’ optimism in the economy increased by the same amount to 48 per cent.

All bar three UK regions reported an increase in confidence, with Wales (up 27 points to 46 per cent) and Yorkshire and Humber (up 22 points to 48 per cent) reporting the biggest jumps.

Paul Evans, regional director for the South East at Lloyds Bank Commercial

Banking, said: “It’s encouraging to see a significant proportion of South East businesses expecting to recruit more staff as they look forward after a disruptive 18 months.

“While there are challenges around the availability of skills in the market, the proportion of businesses planning to create jobs could deliver a timely boost to the region’s economy.”

Confidence increased across the four broad sectors, notably in manufacturing and services.

Manufacturing (up nine points to 49 per cent) reached a four-month high, while services gained 11 points to 47 per cent, the highest since early 2017, with particularly strong trading prospects in hospitality and financial and business services. Retail confidence improved by eight points to a four-month high of 42 per cent, while construction edged up by one point to 41 per cent.