Business confidence in the region fell in August as doubts mounted over the economic outlook but firms are increasingly hopeful on their own prospects. Overall confidence in the East of England fell by nine points to 52 per cent but remained well above the long term average according to a business barometer from Lloyds Bank Commercial Banking. The fall reflected a sharp downturn in optimism on the economy, which slid by 20 points to 44 pc. Firms' confidence in their own prospects actually increased by two points to 60pc. Kirsty Sadler, regional director for the East of England, Lloyds Bank Commercial Banking, said: “It’s great to see businesses in the East remaining confident in their own prospects – a strong foundation on which to build future growth.” Over the next six months, businesses in the region see the top growth target areas as entering new markets - cited by 44pc - followed by evolving their offering and investing in teams. Nationally, UK business confidence in August was unchanged from July at 50pc. Across sectors construction saw a steep increase in expectations, while manufacturing, retail and services all saw small declines.
Separately, small businesses in the East of England are still seeing falling revenues but 39 per cent of firms expect to increase turnover in the third quarter, according to a Federation of Small Businesses report. Although the region’s businesses are less pessimistic than those elsewhere in the country, the report highlights the impact of prolonged financial pressures.
