Green light for HS2 helps buoy region’s business confidence

West Midlands businesses enjoyed a surge in confidence last month, with signs that the green-light for HS2 contributed to the positive outlook.

Business confidence in the West Midlands rose 10 points during February to 28%, according to the latest Business Barometer from Lloyds Bank Commercial Banking, in timing with the go-ahead for HS2.

Companies in the West Midlands reported higher confidence in the economy at 34%, an increase of 21 points from January, while confidence in their business prospects remained at the same level as the previous month at 23%, giving an overall confidence of 28%.

Businesses’ hiring intentions remained robust, with a net balance of 28% of businesses in the region expecting to hire more staff during the next year, up three points on last month.

Across the UK, overall confidence was unchanged on last month at 23% as firms’ optimism in the economy and confidence in their own prospects held steady.

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 Midlands at Lloyds Bank Commercial Banking, said: “There are signs that the green-light for HS2 may have helped to buoy business confidence in the West Midlands this month. The project will lead to a host of exciting new opportunities in the coming years, creating better links between cities and towns in the region and across the UK.

“A strong pipeline of skills and talent is vital to the future prosperity of the West Midlands’ burgeoning digital, financial services and manufacturing industries, so this is a massive boost to the area.”