West Midlands confidence soars in April

Business confidence in the West Midlands rose 24 points during April to 41%, the sharpest rise of any UK nation or region, according to the latest Business Barometer from Lloyds Bank Commercial Banking. 

Companies in the West Midlands reported higher confidence in their own business prospects month-on-month, up 27 points at 43 per cent. When taken alongside their optimism in the economy, up 22 points to 40 per cent, this gives a headline confidence reading of 41 per cent. 

Businesses in the West Midlands identified their top target areas for growth in the next six months as investing in their teams, including hiring new staff and investing in training, introducing new technology and entering new markets.

A net balance of 17 per cent of businesses in the region also expect to increase staff levels over the next year, the same proportion as in March.  

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

Dave Atkinson, regional director for the West Midlands and Lloyds Bank Commercial Banking, said: “After a drop in confidence last month, it’s encouraging to see that the West Midlands has bounced-back to boast the sharpest increase in business confidence in the UK during April.  

“Our region has an agile and resilient economy, so it’s unsurprising that almost half of the businesses surveyed are planning to accelerate their growth by investing in their workforce or by introducing new technologies. This resilience was further highlighted earlier this month, when hundreds of likeminded businesses came together at the Birmingham Business Expo, collectively showcasing the drive and innovation that exists in high-growth firms that are fuelling the region’s increased optimism and confidence.” 

Hann-Ju Ho, Senior Economist, Lloyds Bank Commercial Banking, said: “We are beginning to see a consistent trend emerge from our Barometer results in recent months. Businesses are feeling increasingly confident about the economy, coinciding with falling inflation and hopes that interest rates will start to fall this year.  

“There continues to be a mixed picture among the regions, with the biggest rises seen in Wales and the South West. The strongest confidence was reported in the East of England, with confidence rising for the third consecutive month. Confidence in the North East eased slightly but remained strong in April.  

“The second quarter of 2024 has started brightly for businesses, and we are seeing firms expressing greater confidence in an enduring economic recovery.”