Business confidence across the North East is low but remained unchanged across November, new research indicates.
Lloyds Bank Commercial Banking's Business Barometer quizzed firms ahead of the Autumn Statement and found the headline confidence reading of 10% was unchanged from October. However, companies' confidence in their own prospects was actually down 17 points and was counterbalanced by renewed optimism in the wider economy, up 20 points to 11%.
This was set against a national backdrop of a five point fall in business confidence with firms' outlook on their own future trading down two points to 25% and a negative view of the economy as a whole a -2%.
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North East firms identified investment in teams, evolving their offering and investing in sustainability among their top potential growth areas over the next six months. Though the net balance of companies expecting to increase their workforces was down 12 points on last month, at 13%.
Steve Harris, regional director for the North East at Lloyds Bank Commercial Banking, said: "It’s encouraging to see confidence among firms here in the North East hold firm, despite the ongoing economic challenges that are front of mind for many businesses. Despite these challenges, investing in sustainability remains among firms’ top priorities for the coming months.
"Those considering investment should look at offers available that provide discounted lending to firms interested in green routes to growth. Whatever the support they require, we’ll remain by the side of businesses across the region to help them navigate the months ahead."
Across the survey of 1,200 businesses, several regions reported an increase in confidence including Scotland (up 19 points to 24%), Wales (up 12 points to 17%) and the South West (up nine points to 5%). Retailers' confidence was boosted to 15%, up from 9%, whole the manufacturing sector's confidence fell for the sixth consecutive month to 4% - its lowest level since early 2021.
Hann-Ju Ho, senior economist Lloyds Bank Commercial Banking, said: "Given the recent political and economic landscape, it comes as little surprise that economic optimism and business confidence have fallen this month. Pay growth expectations remain high by historical standards, which could signal ongoing difficulties ahead for businesses to fill vacancies.
"Looking ahead, it will be interesting to see if the clearer policy picture provided by the Autumn Statement will lead to business confidence moving in a more positive direction as we go into 2023."
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