Business confidence in the North West dipped by two points during March to 59%, according to the latest Business Barometer from Lloyds, but remained above the UK average for an eighth month in a row.
Companies in the region reported higher confidence in their own business prospects month-on-month, up four points at 64%.
When taken alongside their optimism in the economy, which fell eight points at 54%, this gives a headline confidence reading of 59% (vs. 61% in February – the second-highest of any UK nation or region in March after London and the West Midlands (both 62%), and the eighth month in a row where the North West’s confidence was higher than the UK average.
Looking ahead to the next six months, North West businesses identified their top target areas for growth as investing in their team, for example through training (55%), evolving their offering, for example by introducing new products ,services (35%) and introducing new technology such as AI and automation (32%).
The Business Barometer, which surveys 1,200 businesses monthly and which has been running since 2002, provides early signals about UK economic trends both regionally and nationwide. This data was gathered between the 3rd – 17th March, ahead of the Spring Statement.
Overall, UK business confidence was 49% in March – the same as in February.
While firms’ optimism in their own trading prospects held steady at 57%, their confidence in the wider economy dropped one point to 40%.
Retail confidence rose seven points to 58%, a post-pandemic high, reflecting positive trading prospects.
In contrast, the manufacturing sector saw the largest decrease in business confidence this month, declining 12 points to 39%, due to increased concerns about supply chain disruptions. Construction firms also saw a decline to 48% and businesses in the service sector saw confidence decline to 47%.
Chris Whittle, area director in the North West at Lloyds, said: “Despite a slight dip this month, confidence levels in the North West have once again outpaced the UK average and firms’ confidence in their own trading prosects has remained resilient.
“Our local economy is one packed full of exciting opportunities and ambitious businesses. We’ll continue to support local firms as they look to drive further growth.”
