Confidence amongst small businesses has fallen but remains slightly higher than the previous year, according to the January 2010 publication of the Lloyds TSB Corporate Markets Business Barometer.
The survey, which is produced on a monthly basis, aims to provide an early indicator of economic trends and business’ expectations.
Overall, the survey concluded lower results this month in comparison to the previous, with 52% of businesses stating that they are more optimistic of an economic recovery than they were three months ago, whereas 19% are more pessimistic. In comparison to these statistics, last month detailed more positive results with 67% of businesses appearing more optimistic whereas 16% were more downbeat.
Regional statistics showed that companies in the South remained the most optimistic with 53% more positive than three months ago, which was down slightly from 54% in November. The North showed the largest fall in optimism, with the net balance down by 35% from the previous survey to only 5%, with the Midlands also showing a large decline in optimism now at only 29%, down 26%. It is worth noting, however, that these figures are more positive than this time last year.
It seems larger firms are faring better as further research showed that 51% of businesses with a turnover of over £25m appear to be most confident of economic conditions. However, the net balance of optimism versus pessimism of 41% is down on the previous month by 13%.
The least confident businesses were in the mid-tier bracket of those with a turnover of between £16 and £25 million where the net balance was at 11%, down a staggering 64% on the previous month.