Region 's business confidence remains among highest in UK - Lloyds

Business confidence in the West Midlands rose eight points during October to 27 per cent, the third highest of all UK regions and nations, behind only London and the North West, according to the latest Business Barometer from Lloyds Bank Commercial Banking - conducted between 3 to 17 October.

Companies in the region reported higher confidence in their own business prospects month-on-month, up 19 points at 39 per cent. When taken alongside their optimism in the economy, down two points to 15 per cent, this gives a headline confidence reading of 27 per cent.

West Midlands businesses identified their top target areas for growth in the next six months as investing in sustainability, investing in their teams and evolving their offering.

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

A net balance of 22 per cent of West Midlands businesses expect to increase staff levels over the next year, down four points on last month.

Overall UK business confidence fell one point during October to 15 per cent, in line with the average over the last three months. Firms ' outlook on their future trading prospects was up two points to 27 per cent, and a net balance of 21 per cent are planning to create new jobs, up four points on last month.

Business confidence in the manufacturing sector fell for the fifth month in a row, to 13 per cent. Confidence in the retail sector declined by 6 percentage points to 9 per cent, while confidence in the services sector also fell to 16 per cent, both the lowest levels since early 2021.

The construction sector saw a 10 percentage point rise to 20 per cent, although this level still remains weaker than in the first half of the year.

Dave Atkinson (Pictured) regional director for the West Midlands at Lloyds Bank Commercial Banking, said: “Despite ongoing concerns about the cost of doing business, the resilience of firms here in the West Midlands is on show once again as they remain among the most confidence in the UK. Part of this could be down to their approach to scaling up, with the top growth opportunity among the region 's businesses now identified as investing in sustainability.

“For those looking to invest in green initiatives to help cut costs and target expansion, such as installing solar panels or investing in more sustainable machinery and equipment, there 's a range of funding and support to help businesses reduce their environmental impact, such as our own Clean Growth Financing Initiative.