Business confidence across the East Midlands is falling while fewer new starters are being taken on, according to a monthly, state-of-the-nation survey.
The latest Lloyds Bank’s Business Barometer suggests that overall confidence among the region’s business managers was down in August, though still slightly higher than the national average.
Economic optimism in the region was also down on July as was individual firms’ confidence in their own business prospects in the months to come.
Businesses’ hiring intentions , with fewer firms saying they would be taking on staff in the coming year.
Across the UK, overall confidence slipped modestly, as businesses became less optimistic about the economic outlook – according to the national survey of 1,200 firms, including 97 in the East Midlands.
Amanda Dorel, regional director for the East Midlands at Lloyds Bank Commercial Banking, said despite economic anxiety the bank was still ready to support businesses with £1.3 billion of funding in 2019.
She said: “Although business confidence has fallen this month, the East Midlands has shown greater optimism than some other parts of the country and businesses here continue to demonstrate encouraging ambitions for further growth.
“Firms are more cautious in their hiring intentions, but there remains a positive net balance of businesses expecting to take on more staff in the next year, and we’d expect firms to be more confident in increasing their headcounts as the economic outlook becomes clearer.”
Only last week , told BusinessLive that while many larger businesses were prepared for a no-deal Brexit – which is becoming more likely as October 31 looms – many smaller businesses were not ready.
She said: “There’s a real concern over the long-term effect of a no-deal Brexit and, secondly, smaller businesses still have a lot to do as many are still not prepared.
“Smaller businesses don’t have the resources or the manpower and some just don’t have the time as they’re focusing on the day job.”
Echoing her sentiments felt there were “question marks” over whether Boris Johnson was backing British business with his approach to leaving the EU.
Following on round-table discussion with 20 business leaders in Leicester, Mr Hardie said not a single one was in favour of a no-deal.
Hann-Ju Ho, senior economist for Lloyds Bank Commercial Banking, said: “We have seen a dip in overall business confidence this month, with firms appearing less positive about their own trading prospects and the broader economy, and remaining low against the historic average.
“While ongoing economic uncertainty is likely a key driver, it’s worth noting that companies’ assessment of the expected impact on their business of the UK leaving the EU has remained broadly unchanged this year.”
