While firms across the North West are confident about their own investment and growth plans there is a gloominess about the wider economy, a new survey shows. Tony McDonough reports
Business confidence in the North West fell by four points during November to 49%, according to the latest Business Barometer from Lloyds.
While firms across the region are confident about their own investment and growth plans there is a gloominess about the wider economy. November’s Budget, which raised employers National Insurance contributions, has worried many businesses.
Companies reported lower confidence in their own business prospects month-on-month, down one point at 65%. When taken with their optimism in the economy, down eight points to 32%, this gives a headline confidence reading of 49% (vs. 53% in October).
Looking ahead to the next six months, North West businesses identified their top target areas for growth as investing in their team through training (49%), evolving their offer by developing new products or services (45%), and entering new markets (44%).
Overall UK business confidence dipped slightly in November to 41% – down three points from October’s 44% – but remained above the long-term average of 29%.
While firms’ confidence in their own trading prospects strengthened two points to a net balance of 55%, their confidence in the economy fell nine points to 26%.
Firms in the manufacturing sector reported the first rise in trading prospects in four months, with the net balance up three points to 49%. Companies in construction and services also indicated stronger business growth outlooks with net balances of 56%.
Retail firms, however, signalled softer prospects for a second month running, with the trading prospects’ net balance down six points at 45%.
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Chris Whittle, area director in the North West at Lloyds, said: “Although there has been a slight dip this month, it’s encouraging that business confidence in the North West has remained above the national average.
“As we approach the end of the year, many firms will be putting their finishing touches to their plans for growth in 2025.”