Lloyds Bank Business Barometer finds business confidence highest in the North-west

The North-west has recorded the highest business confidence of any UK region in Lloyds Bank’s latest Business Barometer survey, although optimism in the economy fell nationwide on the previous month.

Business confidence is now at its lowest level nationally since March 2021 at the end of the second national Covid-19 lockdown. Despite ongoing challenges of high inflation, confidence for June remains in line with long-term average figures for the Business Barometer.

Business confidence fell in all regions of the UK, except for the East of England, with London and the West Midlands seeing the sharpest fall; North-west businesses are now Britain’s most optimistic, after confidence fell a meagre 2%.

A key positive from the figures was the continued strength in hiring intentions across all regions in spite of the more mixed outlook for the future.

Martyn Kendrick, Regional Director for the North West at Lloyds Bank Commercial Banking, said:

“With inflation rising, supply chain challenges and labour shortages continuing to bite, businesses are facing into tough economic headwinds. But the resilience of firms across the North West is once again shining through.

“Businesses are clearly focused on growth. Hiring intentions remain strong and management teams are exploring opportunities to expand into new markets.

“Tools like asset and invoice financing can help firms manage cashflow and create working capital to invest in sustainable, long-term growth opportunities. We’re here to help the region’s businesses navigate this challenging economic period and build the foundation for growth in the months and years to come.”

Hann-Ju Ho, Senior Economist at Lloyds Bank Commercial Banking, added:

“Business confidence declined this month, suggesting that the momentum for growth is moderating.

“Firms remain broadly positive but face several challenges ahead, including concerns around higher costs and slowing demand. If these trends continue, businesses may have less scope to pass on higher costs to support their margins.”