East Midlands business confidence rises in June as optimism in trading outlook jumps
Added by Love Business East Midlands | 30 June 2026
UPDATED: 30 June 2026
Business confidence in the East Midlands rose two points during June to 56%, according to the latest Business Barometer from Lloyds.
Companies in the East Midlands reported higher confidence in their own trading outlook month-on-month, up ten points at 63%. When taken alongside their optimism in the economy, down seven points to 48%, this gives a headline confidence reading of 56% (vs. 54% in May 2026).
Stronger customer demand was the key driver of East Midlands firms’ confidence in both the broader economy (47%) and their own trading outlook (64%).
A net balance of 48% of businesses in the region also expect to increase staff levels over the next year, up 22 points on last month.
Business confidence in the East Midlands now sits above the 12-month average of 49%, with its highest figure of 62% in March 2026.
Looking ahead to the next six months, East Midlands businesses identified their top target areas for growth as investing in their team (42%), evolving their offering, for example by introducing new products or services (40%) and entering new markets (36%).
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.
Dave Atkinson, Regional Director for the East Midlands, said:
“Confidence is climbing, and more importantly, is being driven by tangible factors as well as optimism.
“Now, companies are backing that confidence with action – expectations for staff expansion are growing and businesses are prioritising investment into their teams. There’s a sense of firms moving forward and sustaining this momentum. We’ll continue to support the region’s businesses as they look to achieve their growth goals.”
National picture
Overall, UK business confidence fell three points in June to 44%.
Firms’ trading outlook fell two points to 56% and their optimism in the economy generally also fell four points to 31%.
The 12-month average for overall confidence is currently sitting at 47% and is trending above the long-term average of 30% since the survey began in 2002.
Despite a modest softening in business confidence due to wider global uncertainty, two thirds of firms nationally (64%) expect stronger output over the year ahead and hiring intentions for the coming twelve months strengthened for the first time since March.
The share of firms planning to increase their workforce rose to 55%, while 14% anticipated headcount reductions, leaving the net balance up five points at 41%. Firms intending to hire cited the need to meet strengthening demand and expand capacity, pointing to a degree of confidence in near-term activity.
Business confidence rose across six of the twelve UK regions and nations in June, with the South West seeing a 22pp jump to 44%, and the East Midlands becoming the most confident region.
Amanda Murphy, CEO for Lloyds Business and Commercial Banking, said:
“Confidence has edged down this month, and that reflects what we’re hearing directly from businesses. Many are still dealing with a mix of higher costs, uncertain demand and a wider global backdrop that feels difficult to read.
“That is weighing on decision making, particularly for firms that are focused on the UK market and have fewer ways to offset those pressures.
“However, this is not a picture of businesses stepping back altogether. Trading outlook remains relatively steady and we continue to see firms looking for new opportunities, even if investment plans have become more cautious.
“Businesses have shown over time that they can adapt in tough conditions, but for many the priority is managing costs and maintaining stability rather than pushing for growth?”
