Business conditions in the region started to stabilise in June but confidence remains weak according to a ‘business barometer’ from Lloyds Bank Commercial Banking.

Almost three quarters (71 per cent) saw a fall in demand for their products and services; a slight improvement on the 72 per cent recorded in May. But only 3 per cent saw an increase in demand, down on the month before. Moreover business confidence in the East remained at -38 per cent in June, the lowest of any English region. However almost a third of firms in the East said they expect to be operating at more than 50 per cent of capacity by the end of June  A fifth of the region’s firms said it would take three months until they were back to operating at pre-Covid-19 levels.

David Atkinson, regional director for the East of England at Lloyds Bank Commercial Banking, said: “Continuing disruption and uncertainty is clearly still weighing heavily on business leaders’ outlook in the East. There’ll be cause for greater optimism in the coming weeks as more non-essential shops open their doors for the first time in months - and with the anticipated re-opening of the hospitality industry in July.” Nationally, in June, the construction sector rebounded strongly.

Hann-Ju Ho, senior economist at the bank, added: “While the results suggest the economy may be starting to see some improvement, trading conditions remain difficult for most firms as the majority are still experiencing disruption to supply chains.”