Business confidence bounces back

Overall business confidence in the West Midlands bounced back in March, rising six points to 17 per cent, but companies still remain cautious about recruiting more staff in the next year.

According to the latest Business Barometer from Lloyds Bank Commercial Banking, companies, surveyed between March 1 and 15, reported higher confidence in their own business prospects at 26 per cent, while economic optimism remained unchanged from February at seven per cent. Together, this gives an overall confidence figure of 17 per cent.

A net balance of 12 per cent of local businesses now expect to hire more staff during the next year, down two points on last month.

Across the UK, overall confidence climbed six points to 10 per cent as firms’ optimism about the economy and their confidence in their own prospects rebounded from February’s lows.

Nationally, companies’ confidence in their own business prospects rose seven points to 20 per cent but firms are evenly split on whether they feel optimistic or pessimistic about the economy.

The Lloyds Bank 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: “While it’s great to see optimism in the West Midlands return, despite ongoing domestic and global uncertainty, firms remain cautious about recruiting more staff in the next year.

“Businesses that are hesitant about investing, despite feeling confident about their prospects, can be reassured that we’ll be standing by the side of West Midlands businesses throughout 2019 to provide the support and guidance they need.

“As part of this, we’ve pledged to lend up to £2.5bn to companies across the Midlands over the next 12 months to help firms convert confidence into growth.”