Lloyds Bank’s Business Barometer for January 2018 shows overall confidence for firms in West Midlands is at 45 per cent, 10 points above the national average; economic optimism in the region stands at 44 per cent, above that recorded across the UK as a whole; and firms’ confidence in their own business prospects is 45 per cent, compared with a UK average of 39 per cent.
Business confidence in the West Midlands is amongst the highest in the UK at 45 per cent in January, according to the latest Business Barometer from Lloyds Bank Commercial Banking.
Firms are also reporting higher than average business prospects at 45 per cent and higher economic optimism at 44 per cent.
Together, this gives an overall confidence of 45 per cent, which is ten points above the average across the UK of 35 per cent.
Nationally, overall confidence rose seven points to a nine-month high, driven mainly by a rise in firms’ economic optimism.
The Business Barometer provides early signals about UK economic trends and has been run monthly since January 2002. This is the first time that the survey, which questioned 1,200 businesses, has been carried out on a regional as well as national basis.
Glen Wilson regional director for the West Midlands at Lloyds Bank Commercial Banking, said: “Local businesses started 2018 positively, with confidence in a number of areas well above the national average.
“It’s encouraging to see strong job prospects for the region, with many businesses planning to increase their workforce over the next year.”
West Midlands businesses’ economic optimism (44 per cent) is higher than the national average of 31 per cent. Meanwhile, their confidence in their own business prospects (45 per cent) is six points higher than across the UK as a whole.
West Midlands companies’ hiring intentions show that a net balance of 42 per cent of businesses in the region expect to hire more staff during the next year, while firms expect a median annual increase in average pay in the region of one to two per cent during 2018.
Across the region, a net balance of 12 per cent of businesses feel that the UK’s exit from the European Union is having a positive impact on their expectations for business activity.
Overall confidence is highest among businesses in London and the North West, both at 47 per cent, followed by the West Midlands at ten points above the national average.
Businesses in Wales are the least confident, with overall confidence 21 points below the national average at 14 per cent.
Hann-Ju Ho, senior economist for Lloyds Bank Commercial Banking, said: “Although business prospects have softened from last month’s high, overall UK business confidence has started the year on a strong footing. The sharp increase in economic optimism signals that downside risks have eased and the economy is likely to continue to expand in Q1 this year.”
