Confidence amongst Northern businesses has increased this month, according to new figures from Lloyds Bank.
The bank’s Business Barometer surveys 1200 firms every month to search for economic trends regionally and nationally.
In March, confidence in the North West increased 4 points to 35%, with businesses in the region identifying the top growth opportunities in the next six months as investing in their teams (36%), investing in sustainability (30%) and diversifying into new markets (29%) .
A net balance of 45% of businesses in the region expect to increase staff levels over the next year, up 20 points on last month.
“It’s great to see that businesses across the region are setting their sights on avenues for growth,” said Martyn Kendrick, Regional Director for the North West at Lloyds Bank Commercial Banking.
“Many firms in the North West are planning to bolster their workforce. The intention to hire new staff is at its highest level in 12 months – showcasing ambitions to boost capacity as firms target expansion. We’ll be by the side of companies providing them with the tools they need to manage cashflow while they build the talent they need to thrive.”
In the North East it climbed 2 points to 38%.
Their top areas for growth were: introducing new technology (46%), evolving their offer (45%) and investing in their teams (39%).
However, a net balance of 12% of businesses in the region expected to reduce staff levels over the next year, down five points on last month.
“It is encouraging to see North East business confidence rise once again and become the joint second highest in the UK,” said Steve Harris, regional director for the North East at Lloyds Bank Commercial Banking.
“While high prices and energy costs remain a concern, particularly for the region’s energy intensive industries, firms are remaining as resilient as ever and putting plans in place to invest in growth. We’ll remain by the side of the North East, supporting their growth ambitions this year.”
Yorkshire
Yorkshire was one of just 2 regions not to report higher levels of confidence. It fell 4 points to 30%.
They identified their top target areas for growth in the next 6 months as: evolving their offer, (54%), diversifying into new markets (32%) and introducing new technology (30%).
There was a broad rise in business confidence across the sectors, particularly in construction (47% up 28 points) and manufacturing (37% up ten points) both at a ten-month high and retail (32% up 11 points) the highest since February 2022.
8 out of 11 regions and nations reported higher levels of confidence than February.
Overall UK business confidence climbed 11 points to 32% in March, with firms reporting their highest confidence levels since May last year.
“Business confidence has seen a surge this month with economic optimism and trading prospects bolstering firms. With hiring intentions improving, we may see employment growth picking up in the coming months. Tentative signs of easing wage pressures suggest that businesses’ difficulties in finding staff may have started to ease,” added Hann-Ju Ho, senior economist for Lloyds Bank Commercial Banking.
“Although the measures in the Budget were widely trailed, it is yet to be seen what the full impact of the Chancellor’s announcement, along with the surprise rise in inflation and recent increase in interest rates, will have had on business confidence.”
