Business confidence in the South East fell seven points during November to 27%, according to the latest Business Barometer from Lloyds.
The Business Barometer, which surveys 1,200 businesses monthly and has been running since 2002, provides 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 one point at 40%. When taken alongside their optimism in the economy, down 13 points to 13%, this gives a headline confidence reading of 27% (vs 34% in October).
Looking ahead to the next six months, South East businesses identified their top target areas for growth as evolving their offering, for example, by introducing new products or services (46%); entering new markets (39%); and investing in their team, for example, through training (31%).
Overall UK business confidence dipped slightly in November to 41% – down three points from October’s 44% – but remained above the long-term average of 29%.
While firms’ confidence in their own trading prospects strengthened two points to a net balance of 55%, their confidence in the economy fell nine points to 26%.
London was the most confident UK nation or region in November (57%), followed by the West Midlands (51%).
Firms in the manufacturing sector reported the first rise in trading prospects in four months, with the net balance up three points to 49%.
Companies in construction and services also indicated stronger business growth outlooks, with net balances of 56% (up six points) and 61% (up four points), respectively.
Retail firms, however, signalled softer prospects for a second month running, with the trading prospects’ net balance down six points at 45%.
Amanda Dorel, regional director for the South East at Lloyds, said: “While confidence fell in November, South East firms remain resolute in their pursuit of new avenues of growth.
“We’ll continue to be by the side of our region’s businesses as they make investments in their teams and operations and map out new opportunities.
“This includes supporting firms with the tools and insights they need to make the most of any seasonal spikes in demand as we approach what is for some – particularly in the local hospitality and retail sectors – one of the busiest times of the year.”
