West Midlands business confidence is highest in UK – Lloyds Bank
Business confidence in the West Midlands rose 30 points during February to 48 per cent, making the region the most positive of all UK regions and nations, according to the latest Business Barometer from Lloyds Bank Commercial Banking.
Companies in the region reported higher confidence in their own business prospects month-on-month, up 33 points at 57 per cent. When taken alongside their optimism in the economy, up 29 points to 41 per cent, this gives a headline confidence reading of 48 per cent.
West Midlands businesses identified their top target areas for growth in the next six months as investing in sustainability (42 per cent), investing in their team (38 per cent) and evolving their offer (33 per cent).
The Business Barometer, which surveys 1,200 businesses monthly, provides early signals about UK economic trends both regionally and nationwide.
A net balance of 50 per cent of businesses in the region expect to increase staff levels over the next year, up 26 points on last month.
Overall UK business confidence decreased by just one point to 21 per cent in February. Firms remained positive about their own trading prospects with a net balance of 31 per cent expecting business activity to increase in the coming 12 months.
Firms also reported plans to create new jobs with 20 per cent of businesses intending to make new hires over the next 12 months – up three points from January.
All UK regions and nations reported a positive confidence reading in February, with six areas reporting a month-on-month increase in confidence. Alongside the West Midlands the Yorkshire and Humber (up 22 points to 34 per cent) saw the largest monthly increase.
Dave Atkinson, regional director for the West Midlands at Lloyds Bank Commercial Banking, said: “It’s fantastic to see businesses in the West Midlands feeling so positive this month. It bucks the trend across the UK, where confidence has seen a small fall generally, demonstrating the impressive ability of the West Midlands to see what others may perceive to be hurdles as opportunities.
“This can be seen most strongly in business owners’ view that sustainability is the top growth opportunity for their firms.
"Those hoping to take advantage of sustainable opportunities in their industry, be it finding ways to reduce their packaging or provide a new product that will help others reduce their energy use, various financial tools are there to help with investments. We will be by the side of businesses to advise and support wherever necessary.”
Retail confidence bounced back, rising for the first time in three months to 21 per cent (up 14 points), led by improvements in both trading prospects and economic optimism. However, business confidence fell in construction (down eight points to 19 per cent) and services (down five points to 20 per cent) although this remains higher than in the latter part of 2022.
