West Midlands Businesses Report Decrease in Confidence, But Remain Resilient and Ready for Growth
Business confidence in the West Midlands took a hit in June, with companies reporting lower optimism in their own business prospects as well as the overall economy. According to the latest Business Barometer survey, confidence levels dropped significantly, with a headline reading of 37 per cent, down from 56 per cent in May.
Despite the decrease in confidence, West Midlands businesses are still looking towards growth opportunities in the coming months. The top target areas for growth identified by these companies include evolving their offerings by introducing new products or services, investing in their team through training, and focusing on sustainability initiatives.
The Business Barometer, which surveys 1,200 businesses monthly, provides valuable insights into economic trends both regionally and nationwide. Overall UK business confidence also saw a decline in June, falling nine points to a net balance of 41 per cent. However, this level is consistent with what was seen in Q1 2024 and remains above the long-term average.
While businesses in the West Midlands reported lower confidence in their trading prospects and the economy, both indicators remained robust. In comparison to other UK regions, Yorkshire and the Humber, the North East of England, and the East Midlands showed higher levels of confidence in June.
Results across different sectors varied in June, with construction, retail, and services seeing declines in trading prospects. Manufacturing, on the other hand, saw an increase in confidence. Dave Atkinson, regional director for the West Midlands at Lloyds Bank Commercial Banking, highlighted the importance of businesses exploring new growth opportunities and investing in sustainability.
Hann-Ju Ho, Senior Economist at Lloyds Bank Commercial Banking, noted that while there was a slight drop in business confidence in June, the results are still in line with positive readings seen earlier in the year. Fewer businesses indicated that prices would increase in the coming months, aligning with recent inflation figures. The mixed results across sectors indicate some challenges, particularly in construction, retail, and services.
Overall, the data from the Business Barometer paints a picture of a slight decline in business confidence in June, but with businesses in the West Midlands and across the UK still actively seeking growth opportunities and investing in their future. Lloyds Bank Commercial Banking remains committed to supporting businesses as they navigate economic challenges and work towards long-term success.