May saw rebound in business confidence, finds Lloyds Business Barometer

A nationwide survey of 1,200 UK companies by Lloyds Banking Group and Ipsos has revealed a rebound in business confidence in May, after a decline in outlook the previous month.

Seven out of 12 UK regions saw a recovery in business confidence in May, including the North West, according to Lloyds Business Barometer. Nationally business confidence rose 3 percentage points to 47%, while in North West there was a 17 point rise to 54% after a steep drop in April.

The survey also revealed that in the North West, more than half of firms were looking to hire, while 67% of firms had higher confidence in their own trading compared to their outlook in April. Optimism in the wider economy also rose from 38% in April, to 54% in May.

Chris Whittle, Area Director in the North West at Lloyds, said:

“Businesses are heading into the summer with increased confidence during what is expected to be a busy time of year with the ambition to hire and help create new job opportunities for people across the North West.”

Nationally, regions in the North and Midlands of England, as well as Scotland and Northern Ireland, all saw equal or greater business confidence than the previous month, while Southern England and Wales reported falls. The construction and retail sectors also saw a recovery in confidence, while manufacturers reported a slight decrease after a strong start to 2026.

Amanda Murphy, CEO for Lloyds Business & Commercial Banking, commented:

“Business confidence edged up modestly in May, suggesting firms are beginning to steady after April’s decline. This month, confidence levels from businesses in the North East particularly stands out. It’s also reassuring to see that increased confidence from the construction sector has brought them more in line with their retail, services and manufacturing counterparts.

“Across the UK, each region and nation presents unique opportunities and drivers of growth – whether that’s clean energy in the North East, advanced manufacturing in the West Midlands or tourism and hospitality in Scotland.