Recruitment tops employers’ ‘to do’ lists as business confidence improves again
Business confidence in the North West rose seven points during August to 34%, a third consecutive month of growth, according to the latest Business Barometer from Lloyds Bank Commercial Banking.
Companies in the North West reported higher confidence in their own business prospects month-on-month, up 17 points at 46%. When taken alongside their optimism in the economy, down two points to 22, this gives a headline confidence reading of 34%.
North West businesses identified their top target areas for growth in the next six months as investing in their teams (44%), entering into new markets (40%) and evolving their offer (32%).
The Business Barometer, which surveys 1,200 businesses monthly, provides early signals about UK economic trends both regionally and nationwide.
A net balance of 28% of businesses in the region expect to increase staff levels over the next year, up three points on last month.
Overall, UK business confidence increased to its highest level since February last year, jumping 10 points to 41% in August. All 11 regions and nations reported a positive business confidence reading in August, with nine regions and nations reporting a higher confidence reading month-on-month.
Optimism in the UK economy also increased in August by 16 points to 37%, and the number of businesses expecting an increase in their trading prospects rose by three points to 46%.
Businesses in London reported the highest levels of business confidence at 52% (up 20 points month-on-month), its strongest reading in 14 months. Firms in the South East reported the second highest reading at 47% (up 17 points month-on-month), followed by those in the South West at 46% (up 12 points month on month).
The construction, retail and service sectors all saw a rise in business confidence in August.
Services gained 12 points to reach a 22-month high of 42%, while retail firms were up nine points to 44%, an 18-month high. Construction firms’ confidence also increased by 11 points to a four-month high of 42%. In contrast, manufacturing confidence fell for a second consecutive month with a four-point decline to 30%, taking it to the lowest level since April 2023.
Martyn Kendrick, regional director for the North West at Lloyds Bank Commercial Banking, said: “It’s encouraging to see firms’ confidence in their trading prospects continue to rise, with many companies set on targeting growth through investment in their teams as they plan for a promising future.
“There is a range of support available to North West businesses looking to upskill their workforce. The manufacturing sector can access training support through the Advanced Manufacturing Training Centre, and those in the agriculture industry can seek support through bodies like the Soil Association.”
