Business confidence in the East of England rose 30 points during July to 53%, according to the latest Business Barometer from Lloyds, with more than half of firms now planning to increase recruitment.
Companies in the East reported higher confidence in their own trading outlook month-on-month, up 24 points at 57%. When taken alongside their optimism in the economy, up 34 points to 48%, this gives a headline confidence reading of 53% (vs. 23% in June 2026).
The sharp increase in firms’ confidence in the economy was primarily driven by stronger market demand (64%), while increased confidence in their own trading outlook was driven by expectations of winning new customers or contracts (66%).
A net balance of 61% of businesses in the region also expect to increase staff levels over the next year, up 24 points on last month and the highest level this year.
Business confidence in the East of England now sits above the 12-month average of 44%, with its highest figure of 57% in March 2026.
Looking ahead to the next six months, East of England businesses identified their top target areas for growth as investing in their team, for example through training (55%), evolving their offering, for example by introducing new products or services (37%), and introducing new technology such as AI (33%).
The Business Barometer, which surveys 1,200 businesses monthly and which has been running since 2002, provides early signals about UK economic trends both regionally and nationwide.
Kirsty Sadler, regional director for the East of England at Lloyds, said: “The summer holidays is always a busy time for businesses in the East of England as both holidaymakers and local residents look to make the most of the good weather. Businesses clearly have that summer feeling too, having entered into this peak season with a renewed sense of confidence as levels surge back above the national average this month.
“With a majority of firms now looking to hire on the back of this optimism, this will help to create new opportunities right across the region in the coming months and we’ll be there to support companies as they pursue their plans for growth.”
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Overall, UK business confidence rose five points in July to 49%, hitting a four-month high.
This was driven by an increase in economic optimism, reflecting the decline in global energy prices, the Bank of England holding interest rates and the announcement of an interim peace agreement in the Middle East at the time of the survey.
Optimism in the wider economy rose 11 points to 42%, compared to a 12-month average of 37%. Of those surveyed, 59% said they were optimistic (up four points from June) in the wider economy, while those who felt pessimistic decreased by seven points to 17%. The main factors cited by firms who felt more positive this month were, stronger customer demand, improving interest rates or financial conditions and better economic news.
Businesses’ own trading outlook remained unchanged at 56% in July, compared to a 12-month average of 57%. Sixty-five percent of firms (up one point from June) expect stronger output over the year ahead, while those expecting weaker activity increased one point to 9%. Among firms expecting stronger activity, the main factors were, stronger customer demand, increase investment in capacity or tech and improved supply chain conditions.
Amanda Murphy, CEO for Lloyds Business and Commercial Banking said:
“It’s encouraging to see business confidence reach its highest level in four months, driven by a significant improvement in economic optimism. While challenges remain, these results suggest many businesses are feeling more optimistic about the opportunities ahead.
“Businesses have remained remarkably resilient in recent months, with many focusing on investing in their future, improving productivity and making sure they’re well placed to respond as market conditions change. The stronger confidence we’re seeing among smaller businesses and firms focused on the domestic market is particularly encouraging, suggesting more businesses are starting to see opportunities for growth and investment.”
