North-west business confidence rose 12 points in May, finds Lloyds Bank survey

Business confidence in the economy in the North-west rose sharply in May, according to the Lloyds Banking Group’s Business Barometer survey.

The monthly survey of 1,200 businesses nationwide saw a 12 point increase in business confidence in the region, with a headline confidence reading of 48%. The survey also saw an increase in the number of businesses anticipating an increase in headcount over the coming year.

Lloyds Bank’s Business Barometer also identified that over the next six months businesses expected to see growth coming primarily from evolving their offering (41% of those surveyed), entering new markets (33%) and introducing new technology (30%).

Chris Whittle, area director in the North West at Lloyds Bank Commercial Banking, said:

“The North West’s businesses will now be looking to translate their most optimistic outlook into new growth, and prepare to make the most of any further improvements in trading conditions or new opportunities.”

Nationally, business confidence also rose eight points to 50%, slightly ahead of the North-west and at its highest level since 2015. Data indicates the rise in confidence is largely down to improved outlook business regarding their own trading prospects as well as the wider economy. Data was collected during the first two weeks of May, ahead of the General Election announcement on which the views of business’ will not be seen until June’s survey.

Sector specific data shows construction to be most optimistic, with business confidence in May climbing 20 points to 58%. Expected output for services also rose 12 points to 57%, its highest level since 2018, while manufacturing businesses reported a slight drop in prospects to 49%.