Northern firms ‘more optimistic’ than London corporates

COMPANIES based in the North are more optimistic about their future economic situation than London corporates.

That’s according to a new study by global market research firm B2B International which says that despite the widening economic gap between the capital and the rest of the UK, more than 90% of businesses across the North, including the North West, North East, the Midlands and Scotland, are optimistic about their economic outlook.

This is surprisingly higher than those London, where one in five businesses are pessimistic about their short-term future.

Those who stated their revenue had significantly decreased by 5% or more in the past two years are considerably more likely to be positive about their business’ commercial future.

On average, companies across the UK have a very optimistic view in terms of their economic outlook – the research established that 90% feel optimistic, with one in five very optimistic.

Manufacturing exhibits the highest commercial confidence out of all UK sectors, where 90% of companies are optimistic with approximately one in three very optimistic.

Conversely, the finance and economic sector is the most pessimistic, with one in five displaying a lack of confidence in their forthcoming prospects.

Paul Hague, director at B2B International, said: “With the capital’s economy set to expand by 15% over the next five years, faster than any other region and accounting for almost a third of total UK growth over the period, the low business confidence here is surprising.

“We can explain the difference by understanding that companies that have struggled to grow in the economic downturn are more likely to be confident with the onset of recovery. Unlike many Northern regions, London’s economy has continued to prosper, and in turn companies here may be more reserved about their outlook, particularly with Eurozone growth grinding to a halt and the question mark over the UK’s EU membership.”

“High confidence in the manufacturing sector is also key talking point. Although British manufacturers have reported worse-than-expected growth in production and new orders for December 2014, the sector has continued an unbroken run of expansion which started in spring 2013 despite the Eurozone struggling – the biggest market for UK exports.”

B2B International spoke to 300 UK firms operating in a range of sectors with an average turnover of £197m.