North East firms more confident than across UK
CONFIDENCE has increased across North East businesses this month and stands above the national average, new research suggests.
A study published by Lloyds Bank indicates the region’s company leaders were more optimistic than many of their contemporaries elsewhere in the country.
According to the latest Business Barometer from Lloyds Bank Commercial Banking, overall North East confidence rose two points to 56% and firms’ outlook across their own prospects raised 11 points to 67%.
But confidence in the wider economy slid seven points to 46% to temper the overall reading.
Regional businesses that researchers spoke to reported priority areas of investing in the workforce via training, breaking into new markets and introducing new technology.
A slim majority of firms also expect to grow staff levels over the next year – a measure that was up eight points on last month.
Outside of the region, only firms in Yorkshire & Humber demonstrated more overall optimism (60%), with the North East leading London, at 52%, and the East of England at 48%.
The country’s service sector saw the greatest fall in sentiment to 40%, offset by rises across manufacturing, retail and construction companies – though those gains were modest.
Martyn Kendrick, regional director for the North East at Lloyds Bank Commercial Banking, said: “North East business have now been more confident than the national average for six months in a row.
“Despite slightly more pessimism when it comes to the wider economy, businesses are increasingly bullish when it comes to their own plans.
“This a reflection of the hard work we know so many have been doing to build a foundation for future growth – a foundation that they’re now looking to capitalise on by further investing in their teams, and broadening their reach into markets. As they put these strategies into action, we’ll continue to be by their side.”
Hann-Ju Ho, senior economist at Lloyds Bank Commercial Banking, said: “With businesses reporting 42% confidence in March, this month’s figures maintain the recent improvement bringing a positive end to the first quarter of the year.
“Firms are showing increasing resilience which is reflected in their easing concern about supply chain disruption and energy prices.
“Businesses also continue to signal optimistic hiring intentions, although slightly down on previous months.
“It’s possible the impending minimum wage rises in April are beginning to come into sharper focus for businesses – especially smaller firms.”