East Midlands firms target upskilling as business confidence falls
Added by Love Business East Midlands | 30 September 2026
Business confidence in the East Midlands fell 31 points during September to 20%, according to the latest Business Barometer from Lloyds.
- Business confidence in the East Midlands fell 31 points to 20% in September
- Firms’ own trading outlook dropped 21 points to 31%, while optimism in the economy dipped 41 points to 9%
- Overall UK business confidence fell 12 points in September to 41%
Companies in the East Midlands reported lower confidence in their own trading outlook month-on-month, down 21 points at 31%. When taken alongside their optimism in the economy, down 41 points to 9%, this gives a headline confidence reading of 20% (vs 51% in August 2026).
Despite this, East Midlands firms reported some pockets of resilience, finding stronger customer and market demand (44%), improving financial conditions (36%) and better economic data (30%) to be the main drivers of optimism in the economy.
A net balance of 30% of businesses in the region also expect to increase staff levels over the next year, down by nine points on last month.
Business confidence in the East Midlands now sits below the 12-month average of 50%, with its highest figure this year of 62% in March.
Looking ahead to the next six months, East Midlands businesses identified their top target areas for growth as investing in their team through training and development initiatives (39%), evolving their offering with new products and services (38%), and introducing new technology (32%).
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.
Graham FitzGerald, Regional Director for the East Midlands at Lloyds, said:
“East Midlands business are navigating an uncertain environment, but it is encouraging to see that firms are focused on opportunities that lie ahead. Continuing to invest in their people, products and technology will help businesses strengthen their position for the future.
“For many, the priority over the coming months will be balancing that longer-term ambition with the need to remain agile and responsive to changing market conditions.
"We’ll continue to provide the support and expertise businesses across the East Midlands need to navigate challenges, pursue opportunities and deliver on their growth ambitions.”
National picture
Overall, UK business confidence fell 12 points to 41% in September, the lowest level since April 2025.
This decline follows August’s reading of 53%, the second highest recorded this year, and buoyant results since May. While confidence remained well above the survey’s long term average of 30%, it was six points below the 12-month average of 47%.
The overall 12-point decline, which was comparable to the fall recorded earlier this year following the start of the Middle East conflict, was driven by a fall in economic optimism, as businesses responded to higher energy prices as a result of renewed tensions in the Middle East.
Businesses’ own trading outlook declined eight points to 50%, compared to a 12-month average of 56%. The majority of businesses (57% down nine points from August) expect an increase in output over the year ahead, while those expecting a decrease in activity reduced by one point to 7%. Among firms expecting weaker activity, the main drivers were economic uncertainty, higher cost pressures and weaker customer demand.
Amanda Murphy, CEO for Lloyds Business and Commercial Banking, said:
“While confidence among larger firms remains strong, smaller businesses have seen a fall in sentiment as they continue to navigate higher costs, inflationary pressures and global uncertainty. Overall confidence remains above its long-term average, and most businesses still expect activity to grow over the coming year, underlining the resilience of UK firms. Ensuring smaller firms can share in future growth will be crucial in the months ahead."
