Business confidence in the North West fell by four points during November to 49%, according to the latest Business Barometer from Lloyds.
Companies in the region reported lower confidence in their own business prospects month-on-month, down one point at 65%.
When taken alongside their optimism in the economy, down eight points to 32%, this gives a headline confidence reading of 49% (vs. 53% in October).
Looking ahead to the next six months, North West businesses identified their top target areas for growth as investing in their team, for example through training (49%), evolving their offer, for instance by developing new products or services
(45%), and entering new markets (44%).
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 dipped slightly in November to 41% – down three points from October’s 44% – but remained above the long term average of 29%.
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While firms’ confidence in their own trading prospects strengthened two points to a net balance of 55%, their confidence in the economy fell nine points to 26%.
London was the most confident UK nation or region in November (57%), followed by the West Midlands (51%).
Firms in the manufacturing sector reported the first rise in trading prospects in four months, with the net balance up three points to 49%.
Companies in construction and services also indicated stronger business growth outlooks with net balances of 56% (up six points) and 61% (up four points), respectively.
Retail firms, however, signalled softer prospects for a second month running, with the trading prospects’ net balance down six points at 45%.
Chris Whittle, area director in the North West at Lloyds, said: “Although there has been a slight dip this month, it’s encouraging that business confidence in the North West has remained above the national average.”
