North West businesses are confident about their region’s economic growth, with almost half expecting the region to outperform the UK economy over the next 12 months, according to new findings from the Lloyds Business Barometer.

Almost nine in ten (88%) are confident their region will see economic growth over the next three years, with 28% feeling very confident. Only the North East (90%) and South East (89%) reported higher confidence levels.

The findings also show that almost half (48%) agree their region’s growth will outperform the national economy over the next 12 months – the highest figure recorded outside of London (62%).

The primary drivers behind firms’ confidence in the North West are investment in transport and logistics infrastructure (47%), investment in regional universities and business incubators (33%) and a supportive local planning regime (33%).

Almost two-thirds (64%) feel that the North West receives its fair share of public investment, the fifth highest proportion recorded from the UK’s 12 nations and regions. Meanwhile, nine in ten (91%) say they’ve witnessed notable growth in their region over the previous three years, which respondents attribute to a supportive local planning regime (41%), investment in transport and logistics infrastructure (37%) and access to finance and investment capital (30%).

The Lloyds Business Barometer survey is made up of 1,200 UK firms from across all nations, regions and sectors.

There’s been a lot of talk recently about the economic success of Greater Manchester, but what’s encouraging about these findings is that the wider North West is also confident about its growth prospects.

Most firms feel our region is getting the investment it needs to support this; they now want to see it used in areas like transport and logistics or our world-class universities to support their growth ambitions. Both businesses and local leaders will have a crucial role to play if the North West is to outpace the UK’s growth as many firms are anticipating.

The national picture

More than four in five UK businesses are confident in their regional economic growth in the next three years, with planning and investment in community and transport reported as the key drivers of future regional economic growth, but there is a divide in how businesses perceive public investment is distributed across the UK.

Confidence was highest in the North East, where 90% of businesses expect regional economic growth, followed by the South East at 89% and the North West at 88%.

When businesses were asked about public investment in their region, 85% of London firms perceive their region receives its fair share. This falls to 37% of businesses surveyed in Yorkshire and the Humber and 38% for businesses in Wales. This compares to 64% of all businesses across the UK who perceive their region receives its fair share.

Meanwhile, 62% of businesses in London think it will outperform the UK economy in the next 12 months, the highest proportion surveyed. By comparison, only 28% of businesses in the East Midlands and South West believe their region will outperform the UK economy, followed by 31% in Scotland, 34% in Wales and 37% in the East of England.

Amanda Murphy, CEO for Lloyds Business and Commercial Banking, said: “Businesses across the UK are telling us they see opportunities to grow.

"Turning this ambition into action requires public and private investment working together to create the right environment for growth.

"Whether its investment in infrastructure, skills, innovation or research, businesses have a clear view of what they need locally to drive growth.

"Every region and nation has its own unique strengths and, by building on these, businesses will have the confidence to invest, create jobs and unlock their full potential."