Business confidence in the North West fell 10 points during July, to 33%, according to the latest Business Barometer from Lloyds Bank Commercial Banking, in contrast to the UK picture.
Companies in the region reported lower confidence in their own business prospects month-on-month, down 10 points at 39%. When taken alongside their optimism in the economy, down 10 points to 26%, this gives a headline confidence reading of 33% (vs. 43% in June).
Looking ahead to the next six months, North West businesses identified their top target areas for growth as investing in their team, for example by investing in training (38%), evolving their offering, for example by introducing new products or services (33%) and introducing new technology (31%).
The Business Barometer, which surveys 1,200 businesses monthly, provides early signals about UK economic trends both regionally and nationwide.
Chris Whittle, area director in the North West at Lloyds Bank Commercial Banking, said: “While confidence has dipped this month, North West businesses have clear plans for growth, led by investment in their own teams.
“This can not only pay long term dividends for companies themselves, but can also have a positive ripple effect across the regional economy as skills and learnings are shared and transferred.”
Overall UK business confidence climbed nine points in July to a net balance of 50% – the same as in May when confidence reached an eight-year high.
Businesses’ confidence in their own trading prospects rose 12 points to 56% – the highest reading since April 2017.
Meanwhile, confidence in the economy climbed six points to 45%.
Wales and the East Midlands (both 62%) were the joint most confident UK regions or nations in July, followed by the East of England (61%).
There was an improvement across all sector categories this month – most notably in retail which rose by 25 points to a post-pandemic high of 60%.
There were also significant gains in manufacturing trading prospects, with the net balance increasing by nine points to a two-year high. Services rose 10 points to 56%, while construction saw a more modest increase by two points to 44%.