Business confidence in the East of England rose 11 points during May to 54%, according to the latest Business Barometer from Lloyds, taking confidence levels back above the UK average.
Companies in the East reported higher confidence in their own trading outlook month-on-month, up six points at 57%. When taken alongside their optimism in the economy, up 17 points to 51%, this gives a headline confidence reading of 54% (vs. 43% in April 2026).
Firms’ confidence in their own trading outlook was driven by stronger customer demand (70%) while confidence in the economy was driven by stronger demand in the wider market (59%).
Meanwhile, 44% of businesses in the region also expect to increase staffing levels over the next year, up 17 points on last month.
Since May 2025, the East of England has had an average overall business confidence of 46% with its largest figure of 64% in August last year and its lowest of 32% in September.
Looking ahead to the next six months, East of England businesses identified their top target areas for growth as introducing new technology, such as AI or automation (41%), investing in their team, for example through training (40%), or entering new markets (35%).
Kirsty Sadler, Regional Director for the East of England at Lloyds, said: “It’s great that businesses in the East of England are preparing for summer with rising confidence levels. As we head into what will be a peak season for many of our region’s firms, it’s encouraging that many are seeing strong demand for both their own services and the wider market.
“We’re already seeing on the ground the impact this increased confidence can have. We’ll continue to be there for firms like this who are looking to invest and grow this summer.”
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Overall, UK business confidence rose three points in May to 47%.
Firms’ trading outlook rose four points to 58% and their optimism in the economy generally rose two points to 35%.
Sixty-six percent expect stronger output over the year ahead, while 8% predict weaker activity.
The main drivers behind businesses expecting a decrease in activity remain the same as in April; economic uncertainty, higher cost pressures and weaker customer demand.
Business confidence rose across seven of the twelve UK regions and nations in May, and decreased in four. Northern Ireland saw notable gains with North East and West Midlands becoming the most confident regions.
Amanda Murphy, CEO for Lloyds Business and Commercial Banking said: “Business confidence edged up modestly in May, suggesting firms are beginning to steady after April’s decline. This month, confidence levels from businesses in the North East particularly stands out. It’s also reassuring to see that increased confidence from the construction sector has brought them more in line with their retail, services and manufacturing counterparts.
“Across the UK, each region and nation presents unique opportunities and drivers of growth – whether that’s clean energy in the North East, advanced manufacturing in the West Midlands or tourism and hospitality in Scotland. We’ve seen first-hand what the right financial support and advice can do for ambitious businesses and are keen to continue supporting our customers as they grow – helping Britain prosper.”
