East of England businesses are showing resilience in response to global uncertainty, with 87% saying they are confident in their ability to withstand economic shocks, according to new findings from the Lloyds Business Barometer.
Two fifths (40%) of businesses in the region say they have been impacted by recent global uncertainty, with 52% citing rising costs and 30% citing reduced demand as the main consequences. Despite this, 58% of firms said they still expect to grow this year.
The Lloyds Business Barometer survey is made up of 1,200 UK firms from across all regions and sectors.
The latest research reveals that businesses in the East are adapting, with 48% of firms actively adjusting their strategy in response to global uncertainty.
Among those taking action, 54% have introduced cost-saving measures, 36% have increased their inventory levels and 32% have locked in commodity, raw material or input prices.
Businesses in the region are using financial tools to help manage volatility, with 69% of companies saying they have the right financial tools and support to mitigate economic shocks.
Of those with appropriate support, 47% use cashflow forecasting, 36% use digital banking tools like automated payments and 28% use currency or forex hedging.
Kirsty Sadler, Regional Director for the East of England at Lloyds, said: “Despite wider pressures businesses across the East of England are continuing to demonstrate their resilience. By proactively taking actions to cut costs and preserve their inventory, a majority of firms are showing there is still a clear path to growth for both themselves and the wider region.
“As firms navigate the coming months, we’ll continue to help them access the tools they need, like cashflow forecasting, to help manage this global volatility. The challenges are clear for businesses in the East, but these findings show there are still opportunities out there to be capitalised on.”
Amanda Murphy, CEO for Lloyds Business and Commercial Banking, said: “What we’re seeing from businesses is not just resilience, but decisive action in the face of ongoing uncertainty.
“Across sectors like manufacturing, logistics and food production, firms are taking practical steps to protect their operations – increasing inventory and locking in costs where they can.
“Many also recognise that global supply chain challenges and energy market volatility are structural issues, not temporary blips. In response, businesses are managing costs, securing supply and building greater resilience into their operating models.
“That puts greater focus on working capital and funding, but it also reflects a confidence. Firms are backing their ability to navigate uncertainty and continue to grow.”
The national picture
On a national level, UK businesses are showing resilience in response to global uncertainty, with 84% saying they are confident in their ability to withstand economic shocks.
More than half (57%) of businesses say they have been impacted by recent global uncertainty, with rising costs (45%) and supply chain disruption (37%) cited most frequently as consequences. Despite this, a further 57% of firms said they still expect to grow this year in spite of shifting market conditions, while 30% expect trading levels to remain the same.
The latest research revealed that businesses are adapting in response to global uncertainty. It found that nearly six in 10 (59%) firms are actively adjusting their strategy in response to worldwide events.
Among those taking action, more than half (51%) have introduced cost-saving measures, while more than a third (35%) have increased their inventory levels (35%), with the same proportion (35%) having locked in commodity, raw material or input prices.
