Business confidence holds for West Midlands firms in March

Business confidence in the West Midlands rose 32 points during March to 66 per cent, according to the latest Business Barometer from Lloyds. 

Companies in the West Midlands reported higher confidence in their own trading outlook month-on-month, up 31 points at 71 per cent.

When taken alongside their optimism in the economy, up 33 points to 62 per cent, this gives a headline confidence reading of 66 per cent (vs. 34 per cent in February). 

A net balance of 48 per cent of businesses in the region also expect to increase staff levels over the next year, up 10 points on last month. 

The Business Barometer, which surveys 1,200 businesses monthly and which has been running since 2002, provides early signals about UK economic trends both regionally and nationwide. This month’s survey was conducted at the start of March, between 2 – 16th. 

Amanda Murphy, CEO for Lloyds Business and Commercial Banking, said: “While businesses are adept at reacting to uncertain, fast-moving conditions, this month’s results show an interesting divergence in sentiment.  

“Smaller businesses may have remained confident because they had not yet seen an immediate change in customer demand or supply chain disruption. Larger firms, however, read global events more cautiously because of their closer exposure to global markets.  

“With most responses coming in the very early stages of the Middle East conflict, we’ll be watching closely to see how confidence evolves.” 

Overall, UK business confidence rose 11 points in March to 55 per cent. 

Firms’ confidence in their own trading prospects rose seven points to 60 per cent, and their optimism in the wider economy increased 14 points to 50 per cent. 

Dave Atkinson (pictured), regional director for the West Midlands, said: “As business confidence holds this month, we remain focused on supporting firms in the West Midlands, providing the finance, guidance and expertise they may need.”