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PRIVACY
Economic Development

Confidence tumbles among North East firms though long term picture is strong

Despite the fall, businesses showed intentions to investment in new technology and in their teams

North East business confidence tumbled in November, but is still above the 海角视频 average.(Image: Newcastle Journal)

Confidence readings from North East businesses fell 14 points during this month to 49%, according to a long running study.

Companies surveyed as part of the Business Barometer from Lloyds reported lower confidence in their own prospects, month-on-month, down 26 points at 50%. Taken alongside sentiment towards the broader economy, down one point to 48%, the headline reading was down markedly on October's level, falling from 63% to 49%.

Regional business leaders indicated that over the next six months their top focus areas for growth included introducing new technology such as automation and AI (48%); investing in their workforce, including through training (41%), and breaking into new markets (36%).

Manufacturers reported the first rise in trading prospects in four months, with a net balance up three points to 49%, while firms in the construction and service sectors also indicated growth prospects with net balances of 56% and 61% respectively. Meanwhile retailers showed softer prospects for the second consecutive month with a net balance down by six points to 45%.

Martyn Kendrick, regional director for the North East at Lloyds, said: "While North East business confidence has fallen this month, it remains above the 海角视频 average. The region’s businesses are making plans to unlock new growth – whether through investments in technology or developing new skills – and we’ll remain by their side every step of the way to help them achieve their ambitions and make the most of new opportunities."

North East sentiment followed overall 海角视频 readings for November, which were down three points on October to 41% but remained above the long-term average of 29%. London was the most confident 海角视频 nation or region in November (57%), followed by the West Midlands (51%).

Hann-Ju Ho, senior economist at Lloyds Commercial Banking, said: “In November, the overall confidence metric fell by three points for the third month running. This is the lowest level since June, but still above the survey’s long-term average, which is ultimately positive from a longer-term perspective.

“These results suggest that while firms have mixed views about the economy, they see their businesses in a good place to cope with any challenges they might face. Hiring intentions, although moderating this month, haven’t fallen by much which is also positive news. Overall, these results show that businesses are still positive and feeling resilient, albeit with tempered views on the economic outlook."