Business confidence has returned to positive territory in the North East as hopes rise that coronavirus vaccines will return the economy to some form of normality, a new report has found.
The Business Barometer from Lloyds Bank Commercial Banking found that business confidence in the North East rose 12 points during December to 4%, moving to an overall optimistic position for the first time since the beginning of the pandemic in March.
But companies polled said employment levels would continue to fall, echoing other business surveys in which an economic recovery is not expected to translate into better job numbers.
Nationally, all 12 海角视频 nations and regions saw a rise in overall confidence during December, with the North East one of just three areas to record scores in positive territory.
The South West recorded highest confidence at 5%, followed by the West Midlands and the North East. The North West had the lowest confidence during December at -13%, despite confidence increasing month-on-month by 15 points.
Steve Harris, regional director for the North East at Lloyds Bank Commercial Banking, said: “The start of a Covid-19 vaccine rollout is welcome news for businesses across the country, and has provided a significant boost for the outlook in the North East, which has been hit hard by the tightest Tier 3 restrictions.
“However, the rise in confidence has not yet helped curb expectations for job losses, and businesses will continue to face difficulties with uncertainty remaining over when we’ll return to a sense of normality. We’ll remain by the side of the North East’s businesses as they navigate the months ahead.”
Nationally, companies in the manufacturing and construction sectors saw a big surge in confidence, while even retail companies reported better scores than recent months, though remaining below the long-term average.
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Hann-Ju Ho, senior economist at Lloyds Bank Commercial Banking, said: “The news of the vaccine progress has bolstered this month’s confidence figures, more than offsetting uncertainties around the 海角视频’s new trading relationship with the EU.
“While confidence remains below average and significant challenges lie ahead, it is heartening to conclude a challenging year with a notable improvement in business sentiment and with the positive momentum hopefully continuing into 2021.”