Latest data from a leading business barometer show confidence is surging among firms in the North West. Tony McDonough reports
Business confidence among North West firms is surging as we enter the autumn months, the latest Lloyds Business Barometer.
According to the monthly survey, business confidence in the North West rose by 10 points to 59% in August. Firms’ optimism in the economy climbed 20 points to 60%, while confidence in their own trading prospects held steady at 58%.
Companies in the region 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).
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, 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%).
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.