Business confidence in the South East fell three points during October to 30%, according to the latest Business Barometer from Lloyds Bank Commercial Banking.
Companies in the South East reported lower confidence in their own business prospects month-on-month, down five points 37%. When taken alongside their optimism in the economy, down two points to 22%, this gives a headline confidence reading of 30%.
The region’s businesses identified their top target areas for growth in the next six months as evolving their offer (38%), investing in their team (32%) and diversifying into new markets (29%).
A net balance of 30% of businesses in the region expect to increase staff levels over the next year, up two points on last month.
Overall UK business confidence rose three points in October from 36% to 39%, and firms’ outlook on the overall UK economy increased four points to 34%. Businesses’ confidence in their own trading prospects also continued the upward trend, rising four points to 45%.
Companies’ hiring intentions reached their highest level since May last year, with 32% of firms intending to increase staff levels over the next 12 months, up six points month-on-month.
Firms in Yorkshire reported the highest levels of business confidence, jumping 12 points to 52% – the highest reading for the region since March 2022. Companies in the South West reported the biggest uptick in business confidence, increasing 26 points month-on-month to 47%.
Following a fall in confidence in September, the retail and service industries both saw an increase in business confidence, with retail business confidence increasing by five points to 37% and services rising by seven points to 43%. Levels are still lower than seen in August, however, when retail business confidence was at 44% and services at 42%.
Manufacturing confidence was 36%, unchanged from last month when confidence rose to a three-month high. Construction fell for a second month in a row to 31% (down five points).
Becci Wicks, regional director for the South East at Lloyds Bank Commercial Banking, said: “Despite a small dip, business confidence in the South East remains resilient. However, optimism in the wider economy is low compared to most other UK regions and nations and it’s possibly hampering firms’ ability to invest.
“As we head into the final quarter of the year, it’s important that firms keep a close eye on their working capital so they’re primed to seize opportunities for growth.
“We’ll be by their side to strategically target the areas where investment will drive expansion and help them to thrive.”
