Business confidence in the North West rose 10 points during August to 59%, according to the latest Business Barometer from Lloyds, taking confidence levels above the UK average.

Companies in the North West reported stable confidence in their own trading outlook month-on-month, unchanged at 58%. When taken alongside their optimism in the economy, up 20 points to 60%, this gives a headline confidence reading of 59% (vs. 49% in July 2026).

North West firms’ confidence in the economy was driven by a more stable political or global environment (47%), while confidence in their own trading outlook was driven by stronger customer demand (60%).

A net balance of 41% of businesses in the region also expect to increase staff levels over the next year, up one point on last month.

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

Looking ahead to the next six months, North West businesses identified their top target areas for growth as introducing new technology, such as AI or automation (47%), investing in their team, for example, through training (40%), and entering new markets (38%).

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: “It’s brilliant that firms in the North West are feeling more confident this month as they look to be in a strong position to capitalise on any new opportunities that come their way.

“This positive outlook means it’s also important that businesses have clear priorities in mind for the coming months, whether that’s investing in technology or their teams, and we’ll be there to support firms with these efforts.”

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Overall, UK business confidence increased four points in August to 53%, the highest reading since the start of the Middle East conflict in March (55%) and above the 12-month average of 47%.

This is the second consecutive increase in business confidence, driven by a rise in economic optimism which is up 18 points since June.

Optimism in the wider economy rose seven points to 49%, compared to a 12-month average of 37%. Of those surveyed, 64% said they were optimistic (up five points from July) in the wider economy, while those who felt pessimistic decreased by two points to 15%.

The main factors cited by firms who felt more positive included stronger customer demand and improving financial conditions.

Businesses’ own trading outlook improved two points to a three-month high of 58% in August, compared to a 12-month average of 56%. Sixty-six percent of firms (up one point from July) expect an increase in output over the year ahead, while those expecting a decrease in activity reduced by one point to 8%.

Among firms expecting stronger activity, the main factors were stronger customer demand, increased investment in capacity or tech and improved supply chain conditions.

Amanda Murphy, CEO Lloyds Business and Commercial Banking, said: “It's encouraging to see business confidence rise for the second month in a row, reaching its highest level since March.

"While international firms remain more confident, it’s good to see domestic companies register a strong month-on-month increase.

"Overall, businesses are reporting stronger customer demand, greater optimism about the wider economy and growing confidence in their own trading outlook, all of which will be helping to support investment and growth plans.

"While businesses continue to operate in a challenging environment, easing cost pressures and fewer firms expecting to raise prices in the coming year, should allow them to focus less on managing headwinds and more on pursuing growth."