Two leading business surveys have revealed that North East businesses are continuing to show future confidence and investing for growth.
Lloyds Business Barometer
The latest Business Barometer from Lloyds has been published, highlighting how confidence in the North East saw a strong increase this month, rising 23 points to 69%. Firms who took part in the May survey reported higher confidence in their own trading outlook month-on-month, up seven points at 65%. When taken alongside their optimism in the economy, up 39 points to 74%, this gives a headline confidence reading of 69% – a big jump on the 46% recorded in April.
It marks the strongest confidence level and biggest monthly jump across England, as well as being the second highest confidence reading for North East businesses in the last five years, up four points compared to May 2025. Looking ahead, regional businesses said their top target areas for growth were investing in their team, introducing new technology such as AI or automation, and investing in sustainability.
Martyn Kendrick, regional director for the North East at Lloyds said: “This marks a rebound from last month, with business confidence increasing in terms of trading prospects, the wider economy and businesses’ plans for growth. What’s encouraging is that firms are matching optimism with decisive action. Half plan to invest in new technology and automation, highlighting the North East’s ambition, resilience and confidence in its future. We’re committed to supporting that momentum - whether through finance, specialist expertise or helping businesses embrace change and unlock new opportunities for growth.”
Amanda Murphy, CEO for Lloyds Business and Commercial Banking said: “Across the UK, each region and nation presents unique opportunities and drivers of growth - whether that’s clean energy in the North East, advanced manufacturing in the West Midlands or tourism and hospitality in Scotland. We’ve seen first-hand what the right financial support and advice can do for ambitious businesses and are keen to continue supporting our customers as they grow - helping Britain prosper.”
Barclays Business Prosperity Index
Meanwhile, the Barclays’ Q1 2026 Business Prosperity Index has been published, showing how companies across the region are continuing to invest for growth and resilience, against a backdrop of continuing cost pressures and workforce challenges. Authors for the Index – which combine anonymised Barclays client data with business leader research – say the results highlight a region that remains focused on long-term capability and expansion, as firms navigate a complex operating environment.
The research by Barclays suggests that business confidence remains strong, with 79% of firms saying they are confident in their prospects over the next 12 months. Workforce challenges, however, are becoming more pronounced, with 65% reporting difficulties hiring skilled labour. The appetite for investment also remains strong, with 46% saying they are planning to expand or upgrade facilities.
Jag Singh, head of corporate banking, North East at Barclays, said: “While there is still uncertainty in the wider environment, the continued commitment to investment reflects both resilience and confidence across North East businesses.”
