UK regional business confidence rises in North West and East Midlands

Business confidence in the North West and East Midlands of the UK rose in August, according to the latest Lloyds Business Barometer.

In the North West, confidence increased by 10 points to 59%, driven by a 20-point rise in economic optimism. While trading outlooks remained stable at 58%, firms cited stronger customer demand and a more stable political or global environment as key drivers. Approximately 41% of North West businesses expect to increase staffing levels over the next year, with growth strategies focusing on new technology, such as AI, and team investment.

In the East Midlands, confidence rose two points to 51%. Although optimism regarding the wider economy increased by 12 points to 50%, companies reported a decrease in their own trading outlook, which fell eight points to 52%. A net balance of 39% of regional businesses plan to increase staff levels in the coming year. Growth targets for these firms include evolving product offerings, entering new markets, and investing in staff training.