Business confidence in the North West fell four points during October to 34%, according to the latest Business Barometer from Lloyds Bank Commercial Banking.
Likewise, companies in the North West reported lower confidence in their own business prospects month-on-month, down three points at 42%. When taken alongside their optimism in the economy, down four points to 26%, this gives a headline confidence reading of 34%.
North West businesses identified their top target areas for growth in the next six months as evolving their offer (57%), investing in their teams (48%) and entering new markets (33%).
The Business Barometer, which surveys 1,200 businesses monthly, provides early signals about UK economic trends both regionally and nationwide.
Despite lower optimism in the overall economy, a net balance of 37% of businesses in the region expect to increase staff levels over the next year, up 14 points on last month.
Overall UK business confidence rose three points in October from 36% to 39%, and firms’ outlook on the overall UK economy increased four points to 34%. Businesses’ confidence in their own trading prospects also continued the upward trend, rising four points to 45%.
Companies’ hiring intentions reached their highest level since May last year, with 32% of firms intending to increase staff levels over the next 12 months, up six points month-on-month.
Firms in Yorkshire reported the highest levels of business confidence, jumping 12 points to 52% – the highest reading for the region since March 2022. Companies in the South West reported the biggest uptick in business confidence, increasing 26 points month-on-month to 47%.
Following a fall in confidence in September, the retail and service industries both saw an increase in business confidence, with retail business confidence increasing by five points to 37% and services rising seven points to 43%. Levels are still lower than seen in August, however, when retail business confidence was at 44% and services at 42%. Manufacturing confidence was 36%, unchanged from last month when confidence rose to a three-month high. Construction fell for a second month in a row to 31% (down five points).
Chris Whittle, regional director for the North West at Lloyds Bank Commercial Banking, said:
“Despite the small drop in overall business confidence this month, it’s encouraging to see that firms in the North West continue to remain committed to growth with many intending to make new hires as we head into the busy festive period and beyond.
“Firms looking to expand their workforce will benefit from tools that will ensure they have the capital needed for their growth strategy. We’ll be on hand to support North West businesses with working capital management facilities as they aim for success.”
