However, the latest Business in Britain report from Lloyds Bank also shows business confidence has stabilised in the region. Tony McDonough reports.

Uncertainty over Brexit and weaker consumer demand are the two biggest worries for North West firms in 2017, a new report reveals.

However, the latest Business in Britain report from Lloyds Bank also shows business confidence has stabilised in the region.

The report’s confidence index – an average of respondents’ expected sales, orders and profits over the next six months – stayed the same as it was in September at 15%.

North West firms are feeling optimistic compared with neighbours Yorkshire, which has experienced a 15 percentage point drop in the last six months.

While the region remains confident, it falls behind the North East and East of England.

The most commonly identified threat chosen by North West firms in the next six months was economic uncertainty (24%), followed by weaker UK demand (18%) as firms wait for further details of Britain’s EU exit.

Firms also cited political uncertainty (11%), weaker overseas demand (9%) and regulation (8%) amongst the biggest threats to their business.

Martyn Kendrick, regional director for SME Banking in the North West, Lloyds Commercial Banking, said: “Business confidence in the North West has remained the same since September, a sign that companies are remaining resilient against current challenges and entering 2017 with a realistic outlook.

“However, many still recognise that economic and political uncertainty may impact their prospects over the next six months and it’s vital that company leaders plan their objectives carefully to help navigate any challenges that they may face.”