Business confidence in North West rose 16 points during May to 54%, according to the latest Business Barometer from Lloyds, with more than half of firms now looking to hire.
Companies in the North West reported higher confidence in their own trading outlook month-on-month, up 10 points at 67%. When taken alongside their optimism in the economy, up 23 points to 42%, this gives a headline confidence reading of 54% (vs. 38% in April 2026).
Firms’ confidence in their own trading outlook was driven by stronger customer demand (64%), while confidence in the economy was driven by stronger demand in the overall market (66%).
Over half (52%) of businesses in the region also expect to increase staff levels over the next year, up 18 points on last month.
Since May 2025, the North West has had an average overall business confidence of 48% with its largest figure of 58% in February 2026 and its lowest of 27% in September.
Looking ahead to the next six months, North West businesses identified their top target areas for growth as introducing new technology, such as AI or automation (51%), investing in their team, for example through training (48%), and entering new markets (47%).
Chris Whittle, Area Director in the North West at Lloyds, said: “Businesses are heading into the summer with increased confidence during what is expected to be a busy time of year with the ambition to hire and help create new job opportunities for people across the North West.
We’re committed to supporting business momentum in the region, whether through finance, specialist expertise or helping businesses embrace change and unlock new opportunities for growth.”
