Region’s business confidence surges
Firms in the West Midlands are more confident about their prospects than any other UK region.
According to the latest Business Barometer from Lloyds Bank Commercial Banking, companies’ confidence in their trading prospects surged by 27% to 57% – the biggest monthly increase and the highest rate in the UK.
Combined with growing optimism about the economy, which rose seven points to 22%, that gives the region an overall confidence rating of 39%, up 16 points and the second highest in the UK.
A net balance of 32% of businesses in the region now expect to hire more staff during the next year, up nine points on last month.
Across the UK, overall confidence bounced back, climbing five points to 24% as firms’ optimism about the economy rose nine points to 17%.
Companies’ confidence in their own business prospects rose two points to 31%.
The Business Barometer questions 1,200 businesses monthly and provides early signals about UK economic trends both regionally and nationwide.
Amanda Dorel, regional director for the West Midlands at Lloyds Bank Commercial Banking, said: “It’s fantastic to see the region’s businesses so confident in their own prospects and planning to create new jobs.
“We hope to see this translate into investment and growth over the next few months.
“The jobs being created by the region’s businesses will provide a welcome boost to the local economy and get it off to a good start in the new year.”
Across the region, a net balance of 7% of businesses said they felt that the UK’s exit from the European Union was having a positive impact on their expectations for business activity. This compares with a net balance of 11% that thought it was having a negative impact a month ago.
Concerns about the impact of leaving the EU were the highest in manufacturing and other services.
Hann-Ju Ho, senior economist, Lloyds Bank Commercial Banking, said: “Following last month’s dip, with business confidence reaching its lowest level since August 2017, it is reassuring to see that business confidence has picked up, helped by stronger economic optimism and hopes of a Brexit deal.”
