Business confidence in the South East rose to an eight-month high in March, 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 21 points at 66%. When taken alongside their optimism in the economy, up 13 points to 35%, this gives a headline confidence reading of 50% (vs. 33% in February) – the highest level since July 2024.
A net balance of 42% of businesses in the region also expect to increase staff levels over the next year, up 20 points on last month.
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%), evolving their offering, for example, by introducing new products or services (39%) 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. This data was gathered between the 3-17 March, ahead of the Spring Statement.
National picture
Overall UK business confidence was 49% in March – the same as in February. While firms’ optimism in their own trading prospects held steady at 57%, their confidence in the wider economy dropped one point to 40%.
The West Midlands and London were the joint most-confident of any UK nation or region in March (both 62%), followed by the North West (59%).
Sector Insights
Retail confidence rose seven points to 58%, a post-pandemic high, reflecting positive trading prospects.
In contrast, the manufacturing sector saw the largest decrease in business confidence this month, declining 12 points to 39%, due to increased concerns about supply chain disruptions.
Construction firms also saw a decline to 48% and businesses in the service sector saw confidence decline to 47%.
Amanda Dorel, regional director for the South East at Lloyds, said: “Stronger optimism from businesses in their trading prospects has buoyed the region’s business confidence to its highest level since last summer.
“Local firms are now looking to capitalise on this outlook with new investment. We’ll continue to provide our tailored, on-the-ground support so they can make the most of the opportunities ahead.”
