December dip for South East business confidence

By Tom Kilkelly

21 December 2023

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According to the latest Business Barometer from Lloyds Bank Commercial Banking, business confidence in the South East region fell seven points during December to 29 per cent.

Companies in the South East reported lower confidence in their own business prospects month-on-month, down two points at 38 per cent. When taken alongside their optimism in the economy, down 10 points to 22 per cent, this gives a headline confidence reading of 29%.

The region’s businesses identified their top target areas for growth in the next six months as evolving their offer (42 per cent), investing in their team (37 per cent) and entering new markets (32 per cent).

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Overall UK business confidence fell two points in December to 35 per cent, the first decrease since August, driven largely by firms’ outlook on the overall UK economy which dipped by eleven points from 38 per cent to 27per cent. Businesses’ optimism in their own trading prospects also decreased, but less markedly so – by five points to 43 per cent

Companies’ hiring intentions also dropped slightly with 29 per cent of firms intending to increase staff levels over the next 12 months, down six points month-on-month.

Becci Wicks, regional director for the South East at Lloyds Bank Commercial Banking, said: “It’s been a challenging year in the South East, as businesses have battled high prices and rising interest rates.

''While the results appear to reflect these headwinds, I know that firms won’t be dwelling on what has been, but what’s to come.

“Firms in the region say that evolving their offer is going to be a key driver for growth in the first half of 2024.

''This will mean careful planning – especially with interest rates due to remain elevated for the majority of the year – and investing in the areas they know will turn the dial for growth. We’ll work by the side of businesses to strategically pinpoint these areas and offer the solutions that will support those ambitions.”

By Tom Kilkelly

Tom Kilkelly started working as a freelance journalist for The Business Magazine following his graduation from UCL in 2022.

During his studies Tom became very interested in the works of Irish authors including Samuel Beckett and Flann O'Brien (Brian O'Nolan).

His current role as a freelance business reporter is his first exposure to the world of business journalism. Working at TBM has given Tom the chance to really get to grips with the goings-on in the business hive that is the South East.