Business confidence in North West plummets according to bank survey

Business confidence in the North West fell by 22 points during December to 32%, according to the latest Business Barometer from Lloyds Bank Commercial Banking.

Companies in the North West reported lower confidence in their own business prospects month-on-month, down 18 points at 41%. When taken alongside their optimism in the economy, down 25 points to 23%, this gives a headline confidence reading of 32% – the lowest recorded figure since July (27%).

North West businesses identified their top target areas for growth in the next six months as investing in their team (45%), entering new markets (39%) and evolving their offer (37%).

The Business Barometer, which surveys 1,200 businesses monthly, provides early signals about UK economic trends both regionally and nationwide.

A net balance of 26% of businesses in the North West expect to increase staff levels over the next year, down 19 points on last month.

Martyn Kendrick, regional director for the North West at Lloyds Bank Commercial Banking, said: “While it’s disappointing that business confidence has dropped in the past month, it is encouraging to see firms prioritising investment in their teams which shows plans for long-term growth.

“Despite the recently announced investment zone for Greater Manchester, economic optimism in the North West has fallen to levels we’ve not seen since August. However, businesses are looking ahead in a more positive light with plans to enter new markets and evolve their offering at the top of many firms’ agenda for the year ahead.

“We’ll continue to be by the side of North West businesses as we head into 2024 and provide the support and guidance needed to capitalise on new growth opportunities.”