North West firms to create jobs in 2020 as business confidence holds steady

Businesses in the North West are planning to create more jobs during 2020 as confidence in the region held steady at six per cent during December, according to the latest Business Barometer from Lloyds Bank Commercial Banking.

Companies report higher confidence in their business prospects at 19%, up nine points on last month’s figure.

When taken alongside their views of the economy overall, this gives an overall confidence reading of six per cent.

A net balance of 14% of businesses in the region expect to hire more staff during the next year, up six points on last month.

Across the UK, overall confidence edged up one point to 10% as firms’ confidence in their own prospects rose six points to 18%, although their optimism in the economy fell to two per cent.

The Business Barometer questions 1,200 businesses monthly and provides early signals about UK economic trends, both regionally and nationwide. This month’s survey was carried out before the result of last week’s General Election was known.

Martyn Kendrick, regional director for North West at Lloyds Bank Commercial Banking, said: “The North West is a resilient region with a robust and diverse local economy.

“As confidence in their own prospects increases and firms look to grow their headcount in 2020, we’ll be by the side of businesses helping them to achieve their ambitions.”

Across the region, a net balance of 19% 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, down three points on a month ago.

Meanwhile, businesses in the West Midlands had the highest confidence for the third month running, at 23%, ahead of the East Midlands at 18%, and London at 16%.

Those in East of England were the least confident, with an overall confidence of minus two per cent, 12 points below the national average.

Nationally, in December, overall business confidence saw a marked improvement in the manufacturing sector, increasing 17 points to 27%.

Confidence in the retail sector increased by one point to 22%, while confidence in the service sector stayed broadly steady at four per cent. The construction sector saw a slight decrease of four points to 16%.

Hann-Ju Ho, senior economist, Lloyds Bank Commercial Banking, said: “As we come to the end of what has undoubtedly been a turbulent year, it is encouraging to see sustained increases in overall business confidence and the sharp improvement in manufacturing confidence.

“There is now clarity over the UK’s departure from the EU, but the focus will turn to whether a new trade agreement can be negotiated during the transition period which currently runs until the end of next year.”