Companies in the region reported higher confidence in their own business prospects month-on-month, up 25 points at 74pc.

When combined with their optimism in the economy, which increased by 42 points to 48pc, this gives a headline confidence reading of 61pc, compared to 27pc in January.

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This was the joint-second highest confidence reading of any UK nation or region in February, tied with the North West of England and behind the North East.

A net balance of 38pc of businesses in the East also expect to increase staff levels over the next year, up 18 points on last month.

Looking ahead to the next six months, businesses in the region identified their top target areas for growth as evolving their offering, for example by introducing new products or services (46pc), entering new markets (45pc) and introducing new technology, such as AI and automation (35pc).

Kirsty Sadler, regional director for the East of England at Lloyds, said: “Confidence continues to build in the East, driven by a stronger economic outlook.

“We’ll continue to support businesses as they work to capitalise on their confidence and make the most of new opportunities – whether that’s launching new products or services, or transforming their operations with new technologies.”

Hann-Ju Ho, senior economist at Lloyds Commercial Banking, said: “The rise in business confidence demonstrates the resilience of UK businesses and their ability to navigate challenges, such as rising costs and uncertainty.

“Increased optimism, along with an expected uplift in trading prospects, is prompting businesses to invest in growing and upskilling their workforce, putting them in a prime position to capitalise on increased demand and drive future growth.”