North East Business Confidence Soars to Record High

The North East region of England has seen a significant boost in business confidence, according to the latest Lloyds Business Barometer. The survey indicates that North East firms' confidence is outstripping those in other regions, with a rise of 21 points to 75%. This is compared to 54% in June.

The research shows that companies experienced significantly higher confidence in their own trading outlook month-on-month, up eight points at 80%, and optimism in the economy was up 34 points to 70%. The improved outlook on the economy was driven by better economic data or news (52%) and improving inflation or cost measures (44%).

Meanwhile, confidence in their own trading outlook was driven by increased investment in capacity or technology (53%) along with improved economic conditions (43%). A net balance of 50% of businesses in the region also said they expect to increase staff levels over the next 12 months - up four points on June.

The top target areas for growth were identified as technology, including AI and automation (55%), entering new markets (45%), and evolving their offering, including launching new products or services (37%). Business confidence in the North East now sits above the 12-month average of 58%, with this month seeing its highest figure of 75%.

Nationally, UK business confidence was up five points in July to 49%, a four-month high, driven by increased optimism about the economy thanks to falling global energy prices, the Bank of England holding interest rates, and the announcement of an interim peace agreement in the Middle East at the time of the survey.