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P.ublished 30th June 2023
business
North West Business Confidence Rises In June
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Companies in the North West reported higher confidence in their own business prospects month-on-month, up four points at 38%. When taken alongside their optimism in the economy, down two points to 21%, this gives a headline confidence reading of 30%.
By exploring new growth prospects, firms are setting themselves up for future success with potential new revenue streams
North West businesses identified their top target areas for growth in the next six months as entering new markets (38%), investing in their team (28%) and evolving their offering (26%).
The Business Barometer, which surveys 1,200 businesses monthly, provides early signals about UK economic trends both regionally and nationwide.
A net balance of 11% of businesses in the region expect to increase staff levels over the next year, down four points on last month.
National picture
Overall, UK business confidence increased by nine points to 37% in June, with all regions reporting a positive confidence reading. Eight out of 10 regions reported a higher confidence reading than in May.
The East Midlands reported the highest levels of business confidence at 52% (up 35 points on last month), the highest level of any UK region or nation this year. Scotland reported the second highest confidence reading at 50% (up 28 points month-on-month), followed by the North East at 47% (up 12 points month-on-month) and Yorkshire at 45% (up 26 points month-on-month). London and the South West were the only regions to report a decline in confidence. In London confidence fell by 10 points to 33%, while in the South West it fell by one point to 29%.
Business confidence for firms in the service sector rose to 37% (up 11 points), the highest seen since February 2022. With the recent spell of good weather and a reduction in food and energy prices, businesses in leisure and hospitality may be able reap the rewards in the months to come. Manufacturing firms’ confidence also increased to its highest level since early 2022, rising to 50% (up 10 points) to outperform other sectors.
Martyn Kendrick
“It's encouraging to see that business confidence remains strong in the North West, with many firms actively seeking to expand their operations into new markets. By exploring new growth prospects, firms are setting themselves up for future success with potential new revenue streams.
“We are committed to supporting firms in the region as they explore opportunities for strategic investment. Our goal is to ensure that they have access to the financial solutions they need to thrive. Whether that’s sustainability-linked loans or working capital management tools such as asset finance that enable them to effectively manage their cashflow.”
Hann-Ju Ho
“It’s encouraging to see business confidence rebounding following last month’s five-point dip to 28%. Trading prospects and optimism have seen a resurgence this month with overall confidence up in all but two of the twelve regions of the UK, which shows positive prospects across the wider economy.
“However, interest rate rises and cost pressures are still felt by many and we await to see the impact of the latest 50 basis point rise in the base rate. Meanwhile, expectations for average pay growth, although down slightly this month, appear to have picked up compared with the start of the year and remain elevated relative to pre-pandemic levels.”