North West business confidence falls in April
Firms in the North West remain gloomy about their prospects in 2024 despite falling inflation, new data shows. Tony McDonough reports
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Business confidence in the North West fell seven points during April to 36%, according to new data.
Just a day after LBN reported there had been a 28% surge in the number of Liverpool city region businesses in ‘significant financial distress’, the latest Business Barometer from Lloyds Bank Commercial Banking paints a further worrying picture.
It revealed irms’ optimism in their own trading prospects fell seven points to 48%, while optimism in the economy dipped seven points to 24%
North West businesses identified their top target areas for growth in the next six months as evolving their offering with new products and services (39%), introducing new technology (28%) and investing in their team, including new staff and training (28%).
A net balance of 36% of businesses in the region also expect to increase staff levels over the next year, up 13 points on last month.
Overall UK business confidence held steady at 42% in April, the same level as recorded in March and February.
While firms’ confidence in their own prospects dipped by four points to 45%, their confidence in the economy rose by four points to 39%. The net balance of companies planning to increase staff levels over the coming 12 months climbed six points to 33%.
The East of England was the most confident UK nation or region in April (56%), followed by Wales (51%) and the North East (46%).
Businesses in the manufacturing sector reported increased confidence this month, recording an increased score of 45% (up four points) which is the highest level for three months.
Similarly, confidence among firms in the services sector (42%) and construction (41%) also improved, largely driven by greater economic optimism.
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In retail, confidence pulled back slightly from last month’s strong showing to 40%, illustrating that confidence in this sector remains fragile.
Jenny France, area director in the North West at Lloyds Bank, said: “North West firms’ confidence is yet to find a stable footing this year, registering two months of growth and two months of decline.
“This in itself shouldn’t create cause for concern – inflation is falling, but more slowly than hoped, for example, and business confidence could simply be reflecting a shifting economic landscape.”