West Midlands business confidence rebounds in July
Companies in the West Midlands reported higher confidence in their own business prospects month-on-month, up 23 points at 57 per cent.
When taken alongside their optimism in the economy, up 28 points to 54 per cent, this gives a headline confidence reading of 56 per cent (vs.30 per cent in June).
A net balance of 47 per cent of businesses in the region also expect to increase staff levels over the next year, up 23 points on last month.
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 (52 per cent), introducing new technology, such as AI or automation (48 per cent) and evolving their offering, for example by introducing new products or services (43 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 July to 52 per cent – its highest level since 2015 and the third consecutive monthly increase.
Firms’ optimism in their own trading prospects rose one point to 58 per cent, while their confidence in the wider economy increased two points to 47 per cent
Wales was the most confident UK nation or region for the second month in a row (76 per cent), followed by the North East (73 per cent).
July saw the service sector’s confidence increase by 11 points to 61 per cent, one of the main drivers behind this month’s overall increase in business confidence, indicating strong momentum in the sector.
This gain was partially offset by declines in other areas, with retail firms down eight points, manufacturers down four points and the construction sector down six points.
Dave Atkinson (pictured), regional director for the West Midlands, said: “It’s particularly good to see that this rise in confidence has been driven by greater optimism from local firms when it comes to their own prospects.
“As the region’s businesses look to build on this outlook, we’ll be ready with our support – whether that’s practical advice and insight from our on-the-ground teams, or lending to help firms make critical investments for further growth.”
Hann-Ju Ho, Senior Economist, Lloyds Commercial Banking, said: “This continued upward trend reflects a growing sense of cautious optimism across the UK economy, underpinned by both improved trading prospects and broader economic sentiment.
“Despite ongoing cost pressures, firms are positioning for growth, particularly in services where hiring and investment plans are accelerating.
“Overall business confidence remains buoyant, with firms well placed to take advantage of opportunities such as new markets, adopting new technology and workforce expansion amid evolving market conditions.”
