WM business confidence dips after two months on top
Business confidence in the West Midlands dropped this month, following two consecutive months as the most confident region in the UK.
Business confidence fell 17 points during April to 31%, according to the latest Business Barometer from Lloyds Bank Commercial Banking.
Companies in the region reported lower confidence in their own business prospects month-on-month, down 23 points at 32%. When taken alongside their optimism in the economy, down ten points to 30%, this gives a headline confidence reading of 31%.
West Midlands businesses identified their top target areas for growth in the next six months as evolving their offer (42%), diversifying into new markets (42%) and investing in sustainability (35%).
The Business Barometer, which surveys 1,200 businesses monthly, provides early signals about UK economic trends both regionally and nationwide.
A net balance of 18% of businesses in the region expect to increase staff levels over the next year, down 11 points on last month.
Overall, UK business confidence climbed one point to 33% in April. Every UK nation and region reported a positive confidence reading and six out of 11 regions recorded a higher reading than last month. London reported the highest levels of business confidence at 47% (up nine points month-on-month), followed by East Midlands (up 18 points) and North East (up three points), both at 41%.
Firms’ outlook on their own trading prospects remained strong at 39% for the second consecutive month, and a net balance of 27% of businesses are intending to increase their staff levels, up two points on March.
Ahead of the three Bank Holidays in May, firms’ optimism in the overall economy increased five points to 28% – the highest reading since June last year.
Dave Atkinson, regional director for the West Midlands at Lloyds Bank Commercial Banking, said: “While business confidence has taken a hit this month, there is plenty to be optimistic about. Not only is overall confidence still upbeat, many of the region’s hospitality, leisure and retail firms are preparing for a bumper month of bank holidays which will hopefully drive increased footfall and consumer spending.
“We will be by the side of the region’s firms to help them make the most of the opportunities that this may create and to support them with their cashflow needs during this period of higher demand.”
