Business confidence in the North West fell 11 points during June to 43%, according to the latest Business Barometer from Lloyds.

Companies in the North West reported lower confidence in their own trading outlook month-on-month, down 13 points at 54% but still above the UK average of 44%. When taken alongside their optimism in the economy, down nine points to 33%, this gives a headline confidence reading of 43% (vs. 54% in May 2026).

Despite this, North West firms reported stronger customer demand (61%) and increased investment in capacity and technology (49%) as key drivers for confidence in their own trading outlook being above the UK average.

Business confidence in the North West now sits below the 12-month average of 48%, with its highest figure of 58% in February 2026.

A net balance of 51% of businesses in the region also expect to increase staff levels over the next year, down just one point on last month.

Looking ahead to the next six months, North West businesses identified their top target areas for growth as evolving their offering, for example by introducing new products or services (61%), entering new markets (45%) and investing in their team, for example through training (41%).

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.

Jenny France, Area Director in the North West at Lloyds, said: “Despite confidence levels falling this month, it’s encouraging to see that firms’ confidence in their own trading outlook in the North West remains above the UK average and that businesses are still seeing strong levels of customer demand.

“Regardless of what the coming months have in store, firms are going into the summer with clear priorities in mind for their development, whether that’s investing in their offering or in their team. We’ll be there to support firms as they look to carry out these plans and set themselves up for the rest of this year.”

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Overall, UK business confidence fell three points in June to 44%.

Firms’ trading outlook fell two points to 56% and their optimism in the economy generally also fell four points to 31%.

The 12-month average for overall confidence is currently sitting at 47% and is trending above the long-term average of 30% since the survey began in 2002.

Despite a modest softening in business confidence due to wider global uncertainty, two thirds of firms nationally (64%) expect stronger output over the year ahead and hiring intentions for the coming twelve months strengthened for the first time since March.

The share of firms planning to increase their workforce rose to 55%, while 14% anticipated headcount reductions, leaving the net balance up five points at 41%. Firms intending to hire cited the need to meet strengthening demand and expand capacity, pointing to a degree of confidence in near-term activity.

Business confidence rose across six of the twelve UK regions and nations in June, with the South West seeing a 22pp jump to 44%, and the East Midlands becoming the most confident region.

Amanda Murphy, CEO for Lloyds Business and Commercial Banking, said: “Confidence has edged down this month, and that reflects what we’re hearing directly from businesses. Many are still dealing with a mix of higher costs, uncertain demand and a wider global backdrop that feels difficult to read.

“That is weighing on decision making, particularly for firms that are focused on the UK market and have fewer ways to offset those pressures.

“However, this is not a picture of businesses stepping back altogether. Trading outlook remains relatively steady and we continue to see firms looking for new opportunities, even if investment plans have become more cautious.

“Businesses have shown over time that they can adapt in tough conditions, but for many the priority is managing costs and maintaining stability rather than pushing for growth?”