Business confidence in the South East rose three points during December to 34%, according to the latest Business Barometer from Lloyds.
While companies in the South East reported lower confidence in their own business prospects month-on-month, down two points at 44%, their optimism in the economy rose nine points to 24%. Taken together, this gives a headline confidence reading of 34% (vs 31% in November).
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%), entering new markets (38%) and introducing new technology, such as automation or AI (29%).
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 rose five points in December to 47%. While firms’ confidence in their own trading prospects dropped one point to 52%, their optimism in the wider economy strengthened 11 points to 42%.
London and the West Midlands were the joint-most confident parts of the UK in December (both 63%) followed by the East Midlands (56%).
Construction saw the sharpest improvement, up 22 points to 61%, its highest level seen this year. Manufacturing also was up five points to 49%, while retail firms edged higher to 47%, likely reflecting seasonal demand. Services confidence fell one percentage point to 41%.
Amanda Dorel, regional director for the South East, said: “It’s encouraging to see local business confidence rise as the year draws to a close. Firms are looking ahead to the new year with plans that involve everything from expanding their reach to investing in their people and harnessing cutting-edge new technology.
“As they put these strategies into action, we’ll continue to be ready to help them take their next steps.”
