South East business confidence takes a dip in April

According to the latest Business Barometer from Lloyds, confidence in the South East fell by one point to 44 per cent in April.

Despite the overall drop, optimism in companies’ own trading outlook increased by one point to 50 per cent.

Amanda Dorel, regional director for the South East at Lloyds, said: “While overall confidence has dipped slightly this month, it’s encouraging to see South East firms remain optimistic about their own trading prospects and commitment to growth.

“Firms are prioritising investment in technology, like AI and automation, to shore up their position in a disrupted market.

“This shows businesses are thinking strategically about their future.

“We’re here to support these ambitions with the finance, expertise and guidance firms need as they embrace these opportunities.”

The monthly survey, which collects responses from 1,200 businesses across the UK, has been running since 2002 and offers early insights into regional and national economic trends.

In the South East, 55 per cent of businesses identified the adoption of new technology, such as AI or automation, as a key growth driver for the next six months.

Meanwhile, 46 per cent plan to invest in workforce training, and 40 per cent aim to explore new markets.

Confidence in the wider economy, however, fell by four points to 38 per cent.

Nationally, business confidence dropped by 11 points in April, also landing at 44 per cent.

Optimism in trading fell by six points to 54 per cent, while confidence in the broader economy declined by 17 points to 33 per cent.

Those in the East Midlands reported the highest levels of confidence at 53 per cent, followed by London at 51 per cent and the West Midlands at 49 per cent.

Amanda Murphy, CEO for Lloyds Business and Commercial Banking, said: “Businesses told us their confidence fell as inflation pressures re-emerged, global uncertainty persisted and costs remained elevated.

“While sentiment declined, it remained above the long-term average, with nearly two-thirds expecting stronger output in the coming year.

“In this environment, as with other recent market disruptions, we continue to observe that sustainable success comes from discipline, resilience and clarity about what really drives long-term value.”

Lloyds said businesses in the South East are proactively seeking growth despite economic uncertainty, with a strong emphasis on embracing technology, upskilling their workforce, and expanding into new markets.