West Midlands business confidence falls but remains above national average - report

Business confidence in the West Midlands fell three points during December to 48 per cent, according to the latest Business Barometer from Lloyds. 

Companies in the West Midlands reported lower confidence in their own business prospects month-on-month, down two points at 61 per cent.

When taken alongside their optimism in the economy, down three points to 36 per cent, this gives a headline confidence reading of 48 per cent (vs. 51 per cent in November). 

Looking ahead to the next six months, businesses in the West Midlands identified their top target areas for growth as investing in their team, for example through training (53 per cent), entering new markets (36 per cent) and evolving their offering, for instance by introducing new products or services (33 per cent). 

The Business Barometer, which surveys 1,200 businesses monthly and which has been running since 2002, provides early signals about UK economic trends both regionally and nationwide.  

Overall UK business confidence fell two points in December to 39 per cent, although remained above the long-term average of 29 per cent. 

While firms’ confidence in the wider economy strengthened five points to 31 per cent, their confidence in their own trading prospects fell eight points to 47 per cent.  

London was the most confident UK nation or region in November (53 per cent) for a second month in a row, followed by the North West (50 per cent). 

Dave Atkinson, regional director for the West Midlands at Lloyds, said: “Despite a small dip during December, it’s great to see that West Midlands business confidence is still sitting comfortably above the national average. 

“As we enter a new year, the region’s firms will be looking to act on this outlook with plans for fresh growth. And we’ll continue to be by their side with our support to help make their ambitions a reality.”