Business confidence in the South East rose seven points during December to 34%, according to the latest Business Barometer from Lloyds.
Companies in the South East reported higher confidence in their own business prospects month-on-month, up five points at 45%. When taken alongside their optimism in the economy, up 11 points to 24%, this gives a headline confidence reading of 34% (vs. 27% in November).
A net balance of 30% of businesses in the region also expect to increase staff levels over the next year, up eight points on last month.
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 (48%), investing in their team, for example through training (46%), and entering new markets (30%).
The Business Barometer, which surveys 1,200 businesses monthly and which has been running since 2002, provides early signals about UK economic trends both regionally and nationwide.
Overall UK business confidence fell two points in December to 39%, although remained above the long-term average of 29%.
While firms’ confidence in the wider economy strengthened five points to 31%, their confidence in their own trading prospects fell eight points to 47%.
London was the most confident UK nation or region in November (53%) for a second month in a row, followed by the North West (50%).
Although confidence fell in the service sector, this was partly offset by rises in manufacturing and retail, with these sectors swapping places in December.
Services fell from 46% to 35% in December – a fall of 11 points. In contrast, manufacturing and retail increased 10 points to 42% and 43% respectively, thereby taking manufacturing and retail above services for the first time in 4 months. Trading prospects for retail rose for the first time in three months, while construction confidence was steady at 41%, equalling last month’s result.
Amanda Dorel, regional director for the South East at Lloyds, said: “It’s great to see South East businesses end the year on a high, bucking the national trend and with stronger confidence in both their own trading prospects and the wider economy.
“We’ll continue to be by the side of local businesses to help them capitalise on this outlook and put their plans into action – whether that’s investing in their teams or launching new products and services.”
