Business confidence in the South East fell 10 points during August to 48%, according to the latest Business Barometer from Lloyds Bank Commercial Banking, which surveys 1,200 businesses monthly to provide early signals about UK economic trends both regionally and nationwide.
Companies in the South East reported lower confidence in their own business prospects month-on-month, down 11 points to 50%. When taken alongside their optimism in the economy, down 10 points to 46%, this gives a headline confidence reading of 48% (vs 58% in July).
Looking ahead to the next six months, South East businesses identified their top target areas for growth as investing in their team, for example, through training (43%), entering new markets (36%) and introducing new technology (34%).
A net balance of 44% of businesses in the region also expect to increase staff levels over the next year, up six points on last month.
National picture
Overall UK business confidence in August remained unchanged from July at 50%. Firms’ confidence in the overall economy increased two points to 47%, offsetting marginally weaker confidence in their own trading prospects, which fell two points month-on-month to 54% but remained above the long-term average.
The North East was the most confident UK nation or region in August (65%), followed closely by Scotland (64%).
Sector Insights
Output expectations for the various sectors remained at or near their three-year highs. Construction had a steep increase to 58%, up by 14 points, whereas other sectors experienced slight declines.
Trading prospects for manufacturing dropped by 2 points to 58%, at the same level as construction, while Retail and Services fell to 53%, down 7 and 3 points, respectively.
Amanda Dorel, regional director for the South East at Lloyds Bank Commercial Banking, said: “Despite a dip in confidence this month, South East firms are looking ahead to new growth with plans to hire new staff, as well as invest in their teams and expand to new markets.
“We’ll remain by their side to ensure they have the funding and support available to put these plans into action – whether that’s tools to help manage working capital or discounted lending to make critical investments in their environmental sustainability.”
