British business confidence hits highs that have not been seen since April 2017, as hopes that the economy is recovering strongly to pre-pandemic levels is identified in a survey. Graham Bancroft, Partner at BB&J Commercial comments on the new findings.
According to research conducting by Lloyds Bank, employers in North West and East of England registered the largest jump in business confidence.
There was some caution among companies about inflation and staff shortages. However, firms in manufacturing services and construction all responded with greater optimism that recovery would continue.
The research conducted on 1,200 firms between 2 and 16 August also highlighted confidence in Northern Ireland, after a negative response in July’s research.
According to the study, overall business confidence among UK firms has risen by six points to +36% in August, driven by improvements in companies’ trading prospects and expectations of stronger growth in the year ahead.
Regional Breakdown
Confidence increased in nine out of the 12 UK regions and nations involved in the research, with particularly strong rises in the North West which was up by 26 points to 64% and the East of England saw a rise of 14 points to 39%.
Smaller rises included the North East, up by 6 points to 46% and London, up by 4 points to 41%. For the North West, East of England and North East, confidence was at its highest since the survey sample was expanded in 2018.
Increases in confidence were also captured for Scotland (34%), the South East (32%), the South West (37%) and Wales (19%). In Northern Ireland, confidence rose drastically to 18% (from 6% in July), however, it remains the region of the UK with the lowest level of confidence.
The remaining regions saw slight confidence declines, with the West Midlands at 27% and Yorkshire and the Humber at 26%.
The improved confidence echoes other recent statistics. Earlier this month, jobs data from the Office for National Statistics suggested that the labour market will continue to rebound robustly. Government borrowing has also fallen as furlough support ends and tax receipts rise.
Confidence in the City
BB&J Commercial is situated close to the Derbion, a shopping centre that attracts 21 million visits to the city annually. Recently, it was announced that the shopping centre made more than 200,000 sq ft of new deals, with several reputable brands moving into the dynamic retail destination.
Graham Bancroft commented “The new lettings to the Frasers Group plc, which will see both Frasers and FLANNELS open new stores in the Derbion, shows a real statement for Derby and also shows real confidence in both the property market and the city. The deals provide a strong backing for ‘in-store’ shopping which has previously taken a huge hit during the pandemic”.
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