Firms’ confidence falls despite lockdown easing
Business confidence in the North East fell three points in June to -23% – but that remained above the UK average of -30%, according to new figures.
The latest Business Barometer from Lloyds Bank Commercial Banking indicated companies in the region reported lower confidence in their business prospects month-on-month at -13% and, when taken alongside their views on the economy overall, this gives a headline confidence reading of -23%.
The Business Barometer questions 1,200 businesses monthly.
When asked about the impact of coronavirus on their business, one third (33%) said they expected to be operating at more than 50% of capacity by the end of June, though almost a fifth (18%) didn’t expect to be operating at all.
Four in ten (41%) expect to be operating at pre-COVID-19 levels within three months, although 11% expect it to take more than 12 months.
The majority of firms continued to see demand negatively affected during June, with the picture worsening month-on-month.
Almost three quarters (70%) experienced a fall in demand for their products and services, up seven points on May. Meanwhile, 8% experienced an increase in demand, up three points on the month before.
Paul Varley, regional director for the North East at
Lloyds Bank Commercial Banking, said: “North East businesses continue to face significant pressures, and many are still grappling with reduced demand.
“The reopening of the retail sector in June, followed by hospitality in July, are each big steps forward that should buoy confidence in the coming weeks.”