North West business confidence rises in June, as more firms plan to hire

While companies in the region reported lower confidence in their own business prospects month-on-month, down two points at 52%, their optimism in the economy rose eight points to 57%. Taken together, this gives a headline confidence reading of 55% (vs. 52% in May).

A net balance of 59% of North West businesses also expect to increase staff levels over the next year, up 13 points on last month.

Looking ahead to the next six months, businesses in the region identified their top target areas for growth as investing in their teams, for example through training (44%), evolving their offering, for example by introducing new products or services (38%) and entering new markets (35%).

The Business Barometer, which surveys 1,200 businesses monthly and which has been running since 2002, provides early signals about UK economic trends both regionally and nationwide.

Overall, UK business confidence increased one point in June to 51%.

Firms’ optimism in their own trading prospects strengthened one point to 57%, while their confidence in the wider economy also rose one point to 45%.

Wales was the most confident UK nation or region in June (67%), followed by London (64%).

Business confidence in the manufacturing and retail sectors saw significant gains this month, with 12-point rises in both sectors to 52%. For manufacturing, this demonstrates an 11-month high.

Construction and services however saw decreases in confidence, with falls by five points and four points respectively.

Jenny France, area director in the North West at Lloyds, said: “For nearly a full year now, North West business confidence has remained above the national average – a testament to the resilience and ambition of the region’s economy.

“Local firms continue to look ahead to fresh growth, and we’ll continue to be ready to provide our support, whether that’s helping them take steps to break into new markets, or launch new products and services.”

Hann-Ju Ho, Senior Economist, Lloyds Commercial Banking, said:“Business confidence has continued its positive momentum, following the significant gains we saw in May.

“In particular, the sustained rise in hiring intentions suggests that while firms do still face challenges, they may be starting to look beyond short-term staffing needs and preparing for future growth.”