North East confidence dips in March
- Business confidence in the North East fell 26 points to 43% in March
- Firms’ optimism in their own trading prospects fell 36 points to 37%, while optimism in the economy dipped 17 points to 49%
- Overall UK business confidence was 49% – the same as in February
Business confidence in the North East fell 26 points during March to 43%, according to the latest Business Barometer from Lloyds.
Companies in the North East reported lower confidence in their own business prospects month-on-month, down 36 points at 37%. When taken alongside their optimism in the economy, down 17 points to 49%, this gives a headline confidence reading of 43% (vs. 69% in February).
Looking ahead to the next six months, North East businesses identified their top target areas for growth as investing in their team, for example by investing in training (54%), introducing new technology, such as AI or automation (41%) and entering new markets (39%).
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 3rd – 17th 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%.
Martyn Kendrick, regional director for the North East at Lloyds said: “Even though confidence has softened, it’s encouraging to see the North East’s businesses remaining focused on their growth plans.
“Whether it’s by helping them make investments in their team, technology or expanding into new markets, we’ll continue to support the region’s businesses in turning their ambitions into success.”
Hann-Ju Ho, Senior Economist, Lloyds Commercial Banking, said: “Business confidence remained steady this month, suggesting that UK companies may have been waiting to see the impact of government decisions at home and globally. Despite this, today’s data continues to reflect a positive growth trend in the UK economy. With confidence maintaining last month’s high, business leaders are optimistic, noting that investing in their development and workforce will position them well to seize future growth opportunities.”