Business confidence among privately owned companies in the East of England has declined slightly in 2026, although firms remain more optimistic than the national average and continue to invest in technology and growth plans, according to new research from KPMG UK.
The mid-year update of KPMG’s Private Enterprise Barometer found that confidence in future growth prospects among businesses in the region fell to 83 percent, down from 86 percent at the beginning of the year. The regional figure remained higher than the UK average of 80 percent, while national confidence dropped from 87 percent during the earlier survey.
KPMG surveyed 1,500 privately owned businesses across the UK at the start of 2026, including 125 companies in the East of England. The firms, which operate across industries such as life sciences, hospitality, food and drink and technology, were surveyed again six months later to assess changes in their outlook.
Technology emerged as the leading investment priority for businesses in the region. Around 67 percent of East of England companies said they were focusing on artificial intelligence, cyber security or broader digital transformation projects. The figure was one percentage point above the UK average and represented a 30-point increase compared with the start of the year.
Many businesses are also seeking growth through diversification. About 65 percent of respondents said they planned to expand their service offerings or reach new customers, slightly higher than the 64 percent recorded earlier in the year and above the national figure.
When asked about funding plans, 53 percent of companies said they were using their own financial resources to support expansion. Among firms considering ways to finance capital investment, 46 percent said they would consider private equity funding, compared with a UK average of 45 percent.
Despite the positive outlook, businesses identified several challenges. Nearly half of East of England respondents, 48 percent, pointed to inflation, rising costs and global disruption affecting supply chains and trade as the biggest short-term risks facing their organisations.
Ahead of the Autumn Budget, 52 percent of regional businesses said they wanted the government to prioritize technology and digital capabilities. The same proportion identified the UK economic outlook and productivity growth as major external factors influencing decisions about investment, expansion and future plans.
Joe Faulkner, East Anglia office senior partner at KPMG UK, said businesses across the region were continuing to invest despite economic challenges.
He said the region had strong potential for future growth, particularly through opportunities linked to the Oxford-Cambridge Growth Corridor. The area currently contributes more than 7 percent of UK GDP and generates over £40 billion in economic output, with government projections suggesting it could add another £78 billion by 2035 if its potential is fully developed.
KPMG said private businesses across the UK are calling for faster adoption of new technology, stronger digital skills, increased investment and a clear industrial strategy.
Euan West, head of KPMG Private Enterprise in the UK and EMA, said businesses had shown resilience during a difficult economic period. He added that many companies were focusing on areas they could control, including investment in technology, skills and capabilities needed for future growth.
