West Midlands business confidence falls in June 

Business confidence in the West Midlands fell 20 points during June to 30 per cent, according to the latest Business Barometer from Lloyds. 

Companies in the West Midlands reported lower confidence in their own business prospects month-on-month, down 17 points at 34 per cent.

When taken alongside their optimism in the economy, down 23 points to 26 per cent, this gives a headline confidence reading of 30 per cent (vs. 50 per cent in May). 

Looking ahead to the next six months, West Midlands businesses identified their top target areas for growth as investing in their team, for example through training (40 per cent), evolving their offering, for example by introducing new products or services (35 per cent) and entering new markets (33 per cent).  

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.  

Overall, UK business confidence increased one point in June to 51 per cent.  

Firms’ optimism in their own trading prospects strengthened one point to 57 per cent, while their confidence in the wider economy also rose one point to 45 per cent. 

Wales was the most confident UK nation or region in June (67 per cent), followed by London (64 per cent).  

Business confidence in the manufacturing and retail sectors saw significant gains this month, with 12-point rises in both sectors to 52 per cent.

For manufacturing, this demonstrates an 11-month high.  

Construction and services however saw decreases in confidence, with falls by five points and four points respectively.  

Dave Atkinson (pictured), regional director for the West Midlands at Lloyds, said: “Despite this month’s fall in confidence, it’s encouraging to see so many businesses still focused on driving new growth, and prioritising areas like training that could have long-term, widespread benefits for our regional economy.

“We’ll continue to work closely with firms to help them take the steps they need to achieve their ambitions.” 

Hann-Ju Ho, senior economist, Lloyds Commercial Banking, said: “Business confidence has continued its positive momentum, following the significant gains we saw in May. 

“In particular, the sustained rise in hiring intentions suggests that while firms do still face challenges, they may be starting to look beyond short-term staffing needs and preparing for future growth.”