Despite rising costs and a gloomy economic picture confidence continues to rise among North West businesses, a monthly barometer reveals. Tony McDonough reports
Firms across the North West are defying the gloomy economic mood with another rise in confidence levels.
According to the latest monthly Lloyds Business Barometer, confidence among businesses in the region rose by seven points in October to 56%. It is the latest in a series of rises during 2026.
North West firms’ confidence in their own trading outlook remained unchanged month-on-month at 57%. When taken alongside their optimism in the economy, up 13 points to 54%, this gives a headline confidence reading of 56% (vs 49% in September 2026).
Their optimism in the economy was driven by stronger customer or market demand (43%), better economic data or news (40%) and industry-specific improvements (41%).
A net balance of 50% of businesses in the region expect to increase staff levels over the next year, up 18 points on last month. Business confidence in the North West now sits above the 12-month average of 50%, with its highest figure this year of 59% in August.
Looking ahead to the next six months, North West businesses identified their top target areas for growth as investing in sustainability (48%), investing in their team, for example through training (45%) and entering new markets (44%).
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Jenny France, area director for the North West at Lloyds, said: “It’s encouraging to see that confidence levels in the North West have increased again this month.
“Confident firms create exciting new opportunities across the region, for example with more businesses now expecting to increase their staffing levels. Confidence sitting above the 12-month average is a positive sign as we start to approach the end of the year.”