Regional business confidence on the rise says Lloyds survey
Business confidence in the North West rose by 12 points during May to 48%, according to the latest Business Barometer from Lloyds Bank Commercial Banking.
Companies in the region reported higher confidence in their own business prospects month-on-month, up eight points at 56%. When taken alongside their optimism in the economy, up 16 points to 40%, this gives a headline confidence reading of 48% (vs. 36% in April).
A net balance of 49% of businesses in the region also expect to increase staff levels over the next year, up 13 points on last month.
Looking ahead to the next six months, North West businesses identified their top target areas for growth as evolving their offering (41%), entering new markets (33%) and introducing new technology (30%).
Chris Whittle, area director in the North West at Lloyds Bank Commercial Banking, said: “The North West’s businesses will now be looking to translate their most optimistic outlook into new growth, and prepare to make the most of any further improvements in trading conditions or new opportunities. And, just like Bolton manufacturers Till & Whitehead Ltd, who we were proud to help this month expand capacity on the back of a growing order book – we’ll be by their side with our funding and support.”
The Business Barometer, which surveys 1,200 businesses monthly, provides early signals about UK economic trends both regionally and nationwide. The data for this edition was collected between 1–16 th May, before the UK general election was announced.
In May, overall UK business confidence reached its highest level since 2015 – rising by eight points to a net balance of 50%.
Businesses showed increased optimism in both their trading prospects (up nine points month-on-month to 54%) and the economy (up seven points to 46%). Firms’ trading outlook was the most optimistic in seven years, while economic optimism was the highest recorded since September 2021.
Hann-Ju Ho, Senior Economist, Lloyds Bank Commercial Banking, said the survey results highlight a notable improvement in business confidence. “Optimism about the economy increased to 46% this month – the highest result since September 2021, when the country was emerging from the Covid-19 pandemic, but before the energy crisis after the invasion of Ukraine.
“The regional picture has also improved – we’ve now seen increases in seven of the UK’s 12 regions, where there was previously a more mixed picture. Results in the South East, Scotland and the West Midlands were particularly strong. Across the sectors, there were strong, broad-based improvements in services and construction.”
