Business confidence dips, but Lancashire firms show resilience

Business confidence in the region fell two points to 42 per cent in June, according to the latest Business Barometer from Lloyds Bank Commercial Banking, but businesses reported the highest confidence levels in the country.

Companies in the North West reported lower confidence in their own business prospects month-on-month, down 11 points to 49 per cent. When taken alongside their optimism in the economy overall, up eight points to 35 per cent, this gives a headline confidence reading of 42 per cent.

North West businesses flagged a range of growth opportunities for the next six months, including diversifying into new markets (39 per cent), investing in their team (37 per cent) and evolving their offering (36 per cent).

The Business Barometer, which questions 1,200 businesses monthly, provides early signals about UK economic trends both regionally and nationwide.

A net balance of 43 per cent of businesses in the region expect to increase staffing levels over the next year, down 15 points on last month.

Across the UK, business confidence fell 10 points during June to 28 per cent.

Firms’ optimism in the economy dropped 12 points to 21 per cent, while their outlook on future trading prospects was down eight points, at 34 per cent.

Martyn Kendrick, regional director for the North West at Lloyds Bank Commercial Banking, said: “With inflation rising, supply chain challenges and labour shortages continuing to bite, businesses are facing into tough economic headwinds. But the resilience of firms across the North West is once again shining through.

“Businesses are clearly focused on growth. Hiring intentions remain strong and management teams are exploring opportunities to expand into new markets.

"Tools like asset and invoice financing can help firms manage cashflow and create working capital to invest in sustainable, long-term growth opportunities.”