North East business leaders have indicated they are confident about the year ahead with more than 80% suggesting their profitability will be up in 2025.
New research analysing regional firms shows they are more confident about profitability entering next year than they were going in to 2024. The Lloyds’ Business Barometer also shows 73% of firms expect to see their turnover increase in the year ahead, a level unchanged from last year's reading.
More than a quarter of business (28%) expect to see revenue increase by between six to 10% over the next year, with 30% forecasting growth beyond that. Researchers surveyed business in the first half of November, finding that 41% said they aim to enhance their use of technology including through automation and artificial intelligence (AI). And 16% want to improve their environmental sustainability.
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Firms reported they will be investing in AI (30%) and 23% said they will invest in other forms of technology. Meanwhile 36% are expecting to upskill their workforces or improve productivity with 22% suggesting their will invest in staff training and the same proportion intending to invest in research and development of new products or services.
In neighbouring Yorkshire, the survey found 44% of businesses are aiming for greater productivity next year with 36% intending to invest in their staff. More than a fifth (23%) expect to spend on recruiting new employees. And 61% of firms across the region expect to increase turnover while 55% anticipate greater profitability.
Martyn Kendrick, regional director for the North East at Lloyds, said: "It’s incredibly encouraging to see more North East businesses expecting profitability growth in the next year, on top of resilient turnover expectations. This is a testament to our businesses’ resilience, tenacity and ambition. As our region’s companies kickstart their 2025 plans, we’ll continue to be by their side with our on-the-ground support to help them achieve their ambitions."
The Business Barometer, which surveys 1,200 businesses monthly and which has been running since 2002, is intended to provide early signals about 海角视频 economic trends both regionally and nationwide. The latest North East reading follows earlier research which showed confidence had fallen across the region's firms with the headline reading down markedly on October's level, falling from 63% to 49%.
The North East followed a national trend which showed confidence had dipped since the summer. Lloyds said that while the results were mixed they showed businesses were in a good place to face challenges.