‘Business confidence on the rise’

BUSINESS confidence in the North is rising according to a new report from Lloyds Bank.

Its twice yearly Business in Britain report, which polls 1,500 businesses, shows that businesses are more optimistic about sales and orders in the first half of 2014.

The survey’s key confidence index tracks businesses’ views of expected sales, orders and profits.

It has increased by 22 points to 44%, from 22% in the previous July survey. This accompanies the fourth consecutive national increase for the net balance of business confidence and is now close to the survey high of 46% recorded in January 1994.

Regional director for SME banking Leigh Taylor said: “This is an encouraging improvement in confidence as we start 2014 and we hope that it will lead to a sustainable UK recovery allowing Northern businesses to grow and prosper.”

Respondents were also more confident about export prospects, and were expecting to hire more staff in the coming months. Business investment is also expected to rise with a quarter saying they planned to increase capital expenditure. Some 11% expected to cut back.

Companies across the UK also remain optimistic about prospects for the economy. Just under two thirds of Northern businesses said they are more optimistic than they were six months ago, while 8% they are less so with an overall net confidence balance of 55%.