West Midlands business confidence up in June
Business confidence in the West Midlands rose six points during the beginning of June to 36 per cent, 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 two points at 39 per cent. When taken alongside their optimism in the economy, up 10 points to 32 per cent, this gives a headline confidence reading of 36 per cent.
West Midlands businesses identified their top target areas for growth in the next six months as investing in sustainability (36 per cent), diversifying into new markets, and investing in their team (both 30 per cent).
Read more: West Midlands business confidence resilient - Lloyds Bank
The Business Barometer, which surveys 1,200 businesses monthly, provides early signals about UK economic trends both regionally and nationwide.
A net balance of 36 per cent of businesses in the region expect to increase staff levels over the next year, up nine points on last month.
Overall, UK business confidence increased by nine points to 37 per cent in June, with all regions reporting a positive confidence reading. Eight out of 10 regions reported a higher confidence reading than in May.
The East Midlands reported the highest levels of business confidence at 52 per cent (up 35 points on last month), the highest level of any UK region or nation this year. Scotland reported the second highest confidence reading at 50 per cent (up 28 points month-on-month), followed by the North East at 47% (up 12 points month-on-month) and Yorkshire at 45 per cent (up 26 points month-on-month).
London and the South West were the only regions to report a decline in confidence. In London confidence fell by 10 points to 33 per cent, while in the South West it fell by one point to 29 per cent.
Business confidence for firms in the service sector rose to 37 per cent (up 11 points), the highest seen since February 2022. With the recent spell of good weather and a reduction in food and energy prices, businesses in leisure and hospitality may be able reap the rewards in the months to come.
Manufacturing firms’ confidence also increased to its highest level since early 2022, rising to 50 per cent (up 10 points) to outperform other sectors.
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“It’s great to see businesses in the West Midlands feeling more confident, particularly in their optimism for the UK economy. Despite ongoing inflationary challenges, the region’s firms remain positive and continue to anticipate opportunities to drive investment and deliver on growth plans.
“For those looking to diversify into new markets there are tools available to help them to examine international opportunities, such as the international trade portal, and those looking to increase their sustainability or invest in new lower-carbon equipment can access discounted lending through the Clean Growth Finance Initiative.”
