Business confidence in the South East rose seven points during July to 44%, 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.
While companies in the South East reported lower confidence in their own business prospects month-on-month, down two points at 49%, their optimism in the economy rose 17 points to 39%. Taken together, this gives a headline confidence reading of 44% (vs. 37% in June).
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 (40%), investing in their team, for example, through training (40%), and entering new markets (37%).
Overall, UK business confidence increased one point in July to 52% – its highest level since 2015 and the third consecutive monthly increase.
Firms’ optimism in their own trading prospects rose one point to 58%, while their confidence in the wider economy increased two points to 47%
Wales was the most confident UK nation or region for the second month in a row (76%), followed by the North East (73%).
July saw the service sector’s confidence increase by 11 points to 61%, one of the main drivers behind this month’s overall increase in business confidence, indicating strong momentum in the sector.
This gain was partially offset by declines in other areas, with retail firms down eight points, manufacturers down four points and the construction sector down six points.
Amanda Dorel, regional director for the South East, said: “South East firms firmly focused on their ambitious growth plans. Whether these involve launching new products, running new training or investing in new technology, we’ll continue to be ready to help local firms take their next steps with our tailored, on-the-ground support.”
