West Midlands firms remain optimistic despite fall in confidence
Business confidence in the West Midlands fell eight points during November to 42 per cent but remained above the UK average, according to the latest Business Barometer from Lloyds Bank Commercial Banking.
Companies?in the West Midlands?actually reported?higher?confidence in their?own?business prospects?month-on-month,?up three points at 46 per cent.??However, their?optimism in?the economy overall was?down 18 points to 37 per cent,?giving a headline confidence reading of 42 per cent.?
The Business Barometer, which questions 1,200 businesses monthly, provides early signals about UK economic trends both regionally and nationwide.?
A net balance of 31 per cent of businesses in the region expect to increase staff levels over the next year, down 13 points on last month, but above the UK average of 30 per cent.
Overall, UK business confidence was buoyant in November at 40 per cent, down just three points on October 's reading of 43 per cent.
Both firms ' confidence in their own trading prospects and optimism in the economy remained comfortably in positive territory, each dipping just three points month-on-month to 39 per cent and 41 per cent respectively.
All UK nations and regions had positive confidence readings in November, with three regions - Wales, the East of England and South East - reporting an increase on October 's data.
Firms in London (down two points to 63 per cent) remained the most confidence for third month in a row, followed by the North East (down 16 points to 45 per cent), the West Midlands and East Midlands (down 13 points to 42 per cent).
A net balance of 30 per cent of firms across the UK reported plans to create new jobs in the next twelve months, with hiring intentions strongest in London (41 per cent), Wales (37 per cent) and the South West (37 per cent).
Amanda Dorel (pictured), regional director for the West Midlands at Lloyds Bank Commercial Banking, said: “It 's great to see so many of the region 's firms are feeling more confident in their own trading prospects this month.
“There have been challenges recently, not least with supply chain challenges and inflation, but as always, the region 's firms are resilient and looking to the future with optimism, with many setting their sights on growth and creating new jobs.
“We will be by the side of the West Midlands business community in the coming months to ensure they have all the support they need as they unlock the opportunities that come their way. ”
At a sector level, confidence slipped in manufacturing (42 per cent), to its lowest since August, linked to the persistence of supply-chain disruptions, while it fell to a seven-month low of 28 per cent in construction.
In contrast, the retail sector (45 per cent) bucked the trend with a pickup in confidence, reflecting hopes for higher spending ahead as the festive period approaches.
Services confidence (41 per cent) fell slightly, with strong growth for financial and business services and communications offset by more downbeat responses from education, health and public administration.