30 Mar 2023

West Midlands tops business confidence rankings

dave-atkinson-lloyds-bank(902350)

Business confidence in the West Midlands was unchanged in March at 48 per cent, the highest of any UK region or nation for the second consecutive month, according to the latest Business Barometer from Lloyds Bank Commercial Banking.

The survey was conducted between 1 and 15 March ahead of the Chancellor 's Spring Budget.

Companies in the region reported lower confidence in their own business prospects month-on-month, down two points at 55 per cent. When taken alongside their optimism in the economy, down one point to 40 per cent, this gives a headline confidence reading of 48 per cent.

West Midlands businesses identified their top target areas for growth in the next six months as investing in their team (45 per cent), diversifying into new markets (36 per cent), and evolving their offer (28 per cent).

The Business Barometer, which surveys 1,200 businesses monthly, provides early signals about UK economic trends both regionally and nationwide.

A net balance of 29 per cent of businesses in the region expect to increase staff levels over the next year, down 21 points on last month.

Overall UK business confidence climbed 11 points to 32 per cent in March, with firms reporting their highest confidence levels since May last year.

On average, firms felt positive about their own trading prospects with 39 per cent of firms expecting business activity to increase in the next 12 months, up eight points on last month and 25 per cent said they would increase staff levels by this time next year, up five points month on month.

Every UK region and nation had a positive confidence reading in March, with eight out of 11 regions recording a month-on-month increase in confidence.

After the West Midlands, Scotland (up 24 points), London (up 20 points), and the North East (up two points) all reported the second highest levels of confidence at 38 per cent.

Dave Atkinson (pictured), regional director for the West Midlands at Lloyds Bank Commercial Banking, said: “It 's great to see the West Midlands remaining the most confident region in the UK.

“Businesses see investing in their teams as a key area for growth, and the news that the region is set to secure funding and greater control over skills and technical education, will be welcomed by many. We will be by the side of businesses to support them with the financial tools and advice they need to make the most of the opportunities ahead. ”

There was a broad rise in business confidence across the sectors, particularly in construction (47 per cent up 28 points) and manufacturing (37 per cent up ten points) both at a ten-month high and retail (32 per cent up 11 points) the highest since February 2022.