Business confidence in the South East fell one point during August to 43%, according to the latest Business Barometer from Lloyds, which surveys 1,200 businesses monthly.
Companies in the South East reported higher confidence in their own business prospects month-on-month, up seven points at 56%. When taken alongside their optimism in the economy, down nine points to 30%, this gives a headline confidence reading of 43% (vs 44% in July).
A net balance of 44% of businesses in the region also expect to increase staff levels over the next year, up 13 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 (42%), entering new markets (39%) and introducing new technology, such as AI and automation (35%).
Overall, UK business confidence rose two points in August to 54%. While firms’ confidence in the wider economy dropped three points to 44%, their optimism in their own trading prospects rose five points to 63%.
London was the most confident part of the UK in August (69%), followed by the East of England (64%).
Manufacturing firms saw confidence up 14 points this month to 62%. This level was previously seen in 2015. Retailers also saw an increase in confidence this month, with levels up 13 points to 57%, a five-month high.
However, construction firms’ confidence fell by five points to 40%, a four-month low, while confidence in service sector firms also fell eight points to 53%.
Amanda Dorel, regional director for the South East at Lloyds, said: “It’s particularly encouraging to see South East firms strengthening their hiring intentions for the year ahead.
“The region’s businesses are focused on building for the future, whether through team development, product innovation or technological advancement. We’ll continue to provide our tailored support to help them achieve their goals.”
