Business confidence in the North West fell five points during August to 47%, according to the latest Business Barometer from Lloyds.
Companies in the North West reported higher confidence in their own business prospects month-on-month, up one point at 53%. However, when taken alongside their optimism in the economy, down 12 points at 40%, this gives a headline confidence reading of 47% (vs. 52% in July).
Looking ahead to the next six months, North West businesses identified their top target areas for growth as evolving their offering, for example through new products or services (41%), introducing new technology, such as AI or automation (39%) and investing in their team, for example through training (36%).
Nationally Overall, UK business confidence rose two points in August to 54%.
While firms’ confidence in the wider economy dropped three points to 44%, their optimism in their own trading prospects rose five points to 63%.
London was the most confident part of the UK in August (69%), followed by the East of England (64%).
Manufacturing firms saw confidence up 14 points this month, to 62%. This level was previously seen in 2015. Retailers also saw an increase in confidence this month, with levels up 13 points to 57%, a five-month high. However, construction firms confidence fell by five points to 40%, a four-month low while confidence in service sector firms also fell eight points to 53%.
Chris Whittle, area director for the North West at Lloyds, said: “Despite a dip in overall confidence, it’s encouraging to see that firms’ expectations for their own trading prospects have improved this month.
“North West firms remain focused on their growth plans, whether that’s evolving their product offerings or embracing new technology. We’ll continue to provide our on-the-ground support to help them achieve their ambitions.”
Hann-Ju Ho, Senior Economist, Lloyds Commercial Banking, said: “This continued upward trend in business confidence suggests UK firms remain optimistic about their own trading prospects while there is a modest cooling of confidence in the wider UK economy. Firms are focusing on what they can control, with many looking to pursue growth opportunities, including entering new markets and adopting new technologies.
