North East business confidence rises - and its 'good news' for job prospects

Yahoo

3 days ago

Business confidence in the North East rose six points during May to 65 percent, according to the latest figures.
The latest Business Barometer from Lloyds, show firms in the region reported higher confidence in their own business prospects, up 10 points at the same percentage.
When combined with their optimism in the economy, which increased by two points to 65 percent, this gives a headline confidence reading of 65 percent.
This was the second-highest reading in the UK in May, after the East Midlands at 66 percent.
The North East businesses identified their top target areas for growth in the next six months as investing in their team (54 percent), introducing new technology (47 percent), and entering new markets (39 percent).
Martyn Kendrick, regional director for the North East at Lloyds, said: "Business confidence has risen for a second month in a row, and it's particularly good to see that this has been driven by a brighter outlook from businesses in both their own prospects and the wider economy.
"North East firms will have their sights set on translating this confidence into action, and we'll be ready to support them in those next steps – whether those involve investments in their people, expansion into new markets or the introduction of new technology."
The Business Barometer, which surveys 1,200 businesses monthly, has been running since 2002 and provides early signals about UK economic trends both regionally and nationwide.
Overall, UK business confidence increased 11 points in May to 50 percent – its highest level since August 2024.
Firms' optimism in their own trading prospects strengthened six points to 56 percent, while their confidence in the wider economy also climbed 16 points to 44 percent.
Hann-Ju Ho, senior economist at Lloyds Commercial Banking, said: "The rebound in business confidence suggests that firms might be in a stronger position for the next quarter.
"The rise in confidence is driven by a sharp increase in economic optimism, reflecting the recovery in financial markets amid more promising prospects for potential global trade agreements.
"Equally as encouragingly is the fact that trading prospects, wage expectations, and hiring intentions also saw improvements this month.
"The positive trends in these metrics are important signals for potential growth and resilience in the business community and the wider economy."