The latest ICAEW/Grant Thornton UK Business Confidence Monitor (BCM) for Q3 2014 has found that the confidence within the region has fallen slightly and now stands at +41.8. However it remains well above the level recorded a year ago.
Companies in the East Midlands have reported a notable improvement in main financial performance indicators in recent quarters. With businesses expanding, there are less reports of customer demand being a challenge, with only 32% reporting this to be an issue. However 27% of businesses report that recruiting candidates with non-management skills is more of a challenge now than a year ago.
Tom Madden, ICAEW regional director for the Midlands, said:
“The level of confidence shown by the region demonstrates that the businesses are optimistic about the future, despite the slight dip. However businesses are having to spend more in order to retain and recruit skilled staff, which could contribute to a fall in confidence. The government and Bank of England must support the region to ensure this dip does not become a slump.”
Grant Thornton has offices across the East Midlands. The firm’s Chris Frostwick Partner and Practice Leader in Leicester added: “Confidence is still buoyant in the region, despite the recorded slight drop, and this is testament to the ambition and drive of the East Midlands’ businesses, coupled with tangible improving business prospects locally, nationally and indeed internationally. Anecdotally, local businesses continue to cite the skills shortage and retention of talent as major barriers to economic recovery, growth and sustainability and this is consistent with the Q3 2014 BCM. It is vital the region’s businesses are given ‘on the ground’ support with timely and relevant initiatives that support them in tackling this particular challenge.”
