Region’s business confidence remains among highest in the country

Business confidence in the West Midlands remains among the highest in the country despite falling eight points during September to 7%.

According to the latest Business Barometer from Lloyds Bank Commercial Banking, companies in the West Midlands report higher confidence in their business prospects, which rose 11 points to 28%. When taken alongside their views of the economy more widely, this gives an overall confidence of 7%, which is the second highest in the UK.

Businesses’ hiring intentions showed that a net balance of 12% of businesses in the region expect to hire more staff during the next year, down four points on last month.

Across the UK, overall confidence rose one point to 2% as firms’ confidence in their own prospects climbed five points to 13%.

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: “Although their confidence has fallen this month, businesses in the West Midlands remain more upbeat than almost any other part of the country and are demonstrating encouraging ambitions for further growth.

“Although slightly cautious in their hiring intentions, a healthy net balance of businesses expect to take on more staff in the next year. We’d expect this to grow and for more firms to grow in confidence as the economic outlook becomes clearer.

“Whatever the coming months may hold, we’ll continue to be by their side, and have pledged £1.2bn to support them throughout 2019.”

Across the region, a net balance of 26% of businesses said they felt that the UK’s exit from the European Union was having a negative impact on their expectations for business activity, compared with a net balance of 6% who thought it was having a positive impact just a month ago.