Confidence falls in April among North West firms

Business confidence in the North West plummeted 15 points to 38% in April according to the latest survey.

Lloyds Bank’s monthly Business Barometer shows confidence in the region fell to 38% during the month. Firms’ optimism in their own trading outlook fell three points to 57%, while their optimism in the economy dipped 27 points to 19%.

Overall UK business confidence fell 11 points to 44% as the uncertainty over the war in the Middle East and the impact on fuel prices weighed heavily on peoples’ minds.

Looking ahead to the next six months, North West businesses identified their top target areas for growth as evolving their offering. This may be by introducing new products or services (43%), investing in their team and entering new markets (41%).

Jenny France, area director in the North West at Lloyds, said: “Despite confidence levels in the North West falling this month, it’s encouraging that firms have clear strategic priorities in mind to drive growth.”

The East Midlands was the most confident UK nation or region in April at 53%, followed by London at 51% and the West Midlands at 49%.

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Amanda Murphy, chief executive for Lloyds Business and Commercial Banking, added: “Businesses told us their confidence fell as inflation pressures re-emerged, global uncertainty persisted and costs remained elevated.

“While sentiment declined, it remained above the long-term average, with nearly two-thirds expecting stronger output in the coming year. UK businesses are resilient and adept at deploying strategies to defend growth in uncertain conditions.”