Jobs boost for region as more than half of businesses hope to recruit

Business confidence in the North West rose by 16 points during February to 61%, according to the latest Business Barometer from Lloyds, with half of firms expecting to take on more staff in the year ahead.

Companies in the North West reported higher confidence in their own business prospects month-on-month, up nine points at 60%. When taken alongside their optimism in the economy, up 23 points to 62%, this gives a headline confidence reading of 61% (vs. 45% in January) – the joint second-highest reading of any UK region or nation in February, tied with the East of England (61%).

A net balance of 50% of businesses in the region also expect to increase staff levels over the next year, up 21 points on last month.

Looking ahead to the next six months, North West businesses identified their top target areas for growth as investing in their team, for example through training (44%), introducing new technology, such as automation or AI (41%) and evolving their offering, for example by introducing new products or services (34%).

The Business Barometer, which surveys 1,200 businesses monthly and which has been running since 2002, provides early signals about UK economic trends both regionally and nationwide.

National picture Overall, UK business confidence rose 12 points in February to 49% — its highest level since August 2024 Firms’ optimism in their own trading prospects increased six points to 57%, while their confidence in the wider economy rose 18 points to 42%.

The North East was the most confident UK nation or region in February (69%).

All four sectors surveyed saw double-digit increases in confidence. The largest improvements were seen in manufacturing, which rose by 13 points to 51%, and construction, which increased by 14 points to 50%. Retail also experienced a significant gain, up 11 points to 51%, and services rose by 10 points to 48%.

Surprisingly, within the services sector, hospitality firms posted a particularly strong rebound in sentiment. 

Confidence across these sectors reached their highest levels in several months, ranging from four months in services to seven months in manufacturing.

Jenny France

Jenny France, area director in the North West at Lloyds, said: “With slightly longer days comes a brighter outlook. Not only is confidence rising, more firms are also looking to hire new staff too – something that won’t just benefit their operations, but also their local communities.  

“As businesses look to drive further growth, we’ll continue to deliver our support.” 

Hann-Ju Ho, Senior Economist, Lloyds Commercial Banking, said: “The rise in business confidence demonstrates the resilience of UK businesses and their ability to navigate challenges, such as rising costs and uncertainty. Increased optimism, along with an expected uplift in trading prospects, is prompting businesses to invest in growing and upskilling their workforce, putting them in a prime position to capitalise on increased demand and drive future growth.

“This chimes with the expectations businesses set out at the beginning of the year, where they predicted a strong start to 2025, with the majority (70%) expecting to see their turnover increase in the year ahead. To sustain this positive momentum, it is important that businesses continue to innovate and adapt, ensuring they remain competitive and resilient to future challenges.”