Brexit fear factor sees business confidence fall across the North West
Business confidence edged down in the North West during August as optimism about the wider economy and Brexit fell further.
The findings came from the latest Business Barometer published by Lloyds Bank Commercial Banking.
The fall in confidence affected job creation plans, with fewer businesses in the region expecting to hire more staff during the next year than in July (22 per cent vs 30 per cent in July).
However, businesses remain relatively upbeat about their prospects with confidence levels increasing one point to 36 per cent.
Meanwhile, optimism about the wider economy fell by seven points to 33 per cent.
Only London and the West Midlands reported higher confidence levels than the North West during August, both at 37 per cent.
Across the North West 12 per cent felt that the UK’s exit from the European Union was having a positive impact on their expectations for business activity.
However, that number dropped by 10 points from July.
The Business Barometer surveys 1,200 businesses monthly and provides early signals about UK economic trends both regionally and nationwide.
In the UK, overall confidence fell by six points to 23 per cent as optimism about the economy dropped eight points to 17 per cent, while confidence in their own business prospects dropped five points to 29 per cent.
Martyn Kendrick, regional director for the North West at Lloyds Bank Commercial Banking, said: “Across the region, we’re seeing businesses scaling back their plans for job growth as uncertainty persists.
“Despite this small drop in overall optimism, it’s encouraging to see how confident firms are regarding their own trading prospects.
“With that in mind, it’s essential that businesses remain ambitious and continue to proactively pursue growth opportunities that further strengthen the regional economy.”
The manufacturing sector remained most confident at 38 per cent, but confidence of construction businesses fell sharply by -12 points to 36 per cent, closely followed by consumer services (-6 points to 22 per cent) and other services (-6 points to 18 per cent).
