Confidence stable but economic uncertainty remains a threat
BUSINESS confidence has stabilised in the North West and economic uncertainty remains the biggest threat to firms, according to the latest Business in Britain report from Lloyds Bank.
The report’s confidence index – an average of respondents’ expected sales, orders and profits over the next six months – stayed the same as it was in September at 15%.
The North West is feeling optimistic compared with neighbours Yorkshire, which has experienced a 15 percentage point drop in the last six months. While the region remains confident, it falls behind the North East and East of England.
The most commonly identified threat chosen by North West firms in the next six months was economic uncertainty (24%), followed by weaker UK demand (18%) as firms wait for further details of Britain’s EU exit.
Firms also cited political uncertainty (11%), weaker overseas demand (9%) and regulation (8%) amongst the biggest threats to their business.
Martyn Kendrick, regional director for SME Banking in the North West, Lloyds Commercial Banking, said: “Business confidence in the North West has remained the same since September, a sign that companies are remaining resilient against current challenges and entering 2017 with a realistic outlook.
“However, many still recognise that economic and political uncertainty may impact their prospects over the next six months and it’s vital that company leaders plan their objectives carefully to help navigate any challenges that they may face.”
