Businesses in the North West are the most confident in the UK, despite overall confidence falling during February, according to the latest Business Barometer from Lloyds Bank Commercial Banking.
Companies in the North West report lower confidence in their business prospects, down 11 points to 18 per cent, and lower economic optimism, which fell five points to six per cent. Together, this gives an overall confidence of 12 per cent, seven points down on January.
Despite this, the region was still the most confident of all UK regions.
Meanwhile, a net balance of 18 per cent of firms in the region expect to hire more staff over the next 12 months, up three points on a month ago, demonstrating the region’s resilience.
Across the UK, firms’ confidence in their own trading prospects fell 14 points to 13 per cent while economic confidence fell by 15 points to minus five per cent.
The Business Barometer questions 1,200 businesses monthly and provides early signals about UK economic trends both regionally and nationwide.
Martyn Kendrick, regional director for the North West at Lloyds Bank Commercial Banking, said: “It’s encouraging to see that confidence in the North West remains higher than in other regions, despite a fall in confidence nationally. While some local firms may be cautious about the year ahead, there are still enough opportunities to encourage them to increase their headcount and capacity.
“We’ve pledged to lend up to £1.3billion to North West firms in 2019 – to help them invest and take advantage of growth opportunities ahead.”
Across the region, a net balance of 14 per cent of businesses said they felt that the UK’s exit from the European Union was having a negative impact on their expectations for business activity, up one point on a month ago.
Regional picture
Businesses in the West Midlands were the second most confident in the UK (11 per cent), followed by the North East (seven per cent).
Those in Wales were the least confident, with an overall confidence of minus two per cent, six points below the national average.
Hann-Ju Ho, Senior Economist, Lloyds Bank Commercial Banking commented: “Political uncertainty has clearly affected business confidence across the UK, but the underlying economy remains resilient and is able to absorb short-term volatility.
“The modest rise in optimism at the start of the year was no more than a blip as uncertainty continues to impact on business confidence. The results suggest that near-term economic growth prospects have moderated further, but there is potential for a recovery further out should uncertainties subside.”
