Business confidence in the South East rose 16 points during February to 33%, 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 nine points at 45%. When taken alongside their optimism in the economy, up 25 points to 22%, this gives a headline confidence reading of 33% (vs 17% in January).
A net balance of 22% of businesses in the region also expect to increase staff levels over the next year, up four points on last month.
Looking ahead to the next six months, South East businesses identified their top target areas for growth as entering new markets and evolving their offering, for example, by introducing new products or services (both 43%) and investing in their team, for example, through training and development (29%).
Overall, UK business confidence rose 12 points in February to 49% – its highest level since August 2024.
Firms’ optimism in their own trading prospects increased six points to 57%, while their confidence in the wider economy rose 18 points to 42%.
The North East was the most confident UK nation or region in February (69%), followed by the North West and East of England – both at 61%.
All four sectors surveyed saw double-digit increases in confidence. The largest improvements were seen in manufacturing, which rose by 13 points to 51%, and construction, which increased by 14 points to 50%. Retail also experienced a significant gain, up 11 points to 51%, and services rose by 10 points to 48%.
Within the services sector, hospitality firms posted a particularly strong rebound in sentiment. Confidence across these sectors reached their highest levels in several months, ranging from four months in services to seven months in manufacturing.
Amanda Dorel, regional director for the South East at Lloyds, said: “This result reflects the resilience and ambition of firms in the region.
“With confidence in both their own prospects and the wider economy on the rise, businesses are now positioning themselves for fresh growth – whether that’s expanding into new markets, evolving their offerings or investing in their teams.
“At Lloyds, we’re committed to continuing to provide the support they need to turn this momentum into long-term success.”
