Business confidence in West Midlands is on rise, says Accenture report
West Midlands business confidence rebounded last month and jumped to its highest level in over a year.
That was according to the latest Accenture/ S&P Global UK Business Outlook, as expectations towards future activity picked up sharply from a record low in October.
Having been at +17 per cent in October, the new report shows that West Midlands business confidence has more than doubled to +46 per cent, the largest increase seen by any UK region, as business leaders begin to look ahead with more optimism.
This was mirrored by the national outlook which rose from +18 per cent to +43 per cent.
Other positive signs of resilience for the region were the profit (+19 per cent) and employment (+27 per cent) forecasts which increased from -7 per cent and +15 per cent respectively, falling in with the national average (+16 per cent and +26 per cent).
While predictions for capital expenditure and research and development plans nationally were less encouraging, the West Midlands showed signs of growth.
The net balance of firms in the West Midlands expecting an increase in capex spending stood at +19 per cent, the highest in the country, which could represent a promising sign for growth as businesses in the region show a willingness to invest. However, budgets remain tight in other areas, with firms in the region expect R&D spending to continue to fall (-3 per cent).
Paul Stanley, West Midlands lead for Accenture, said: “The businesses in the West Midlands continue to show resilience in the face of these challenging times and it’s encouraging that firms in our region are optimistic as we look to the future.
"This level of optimism needs to be maintained as businesses look to the long term, and a way of delivering this is through investment to ensure the business is well-equipped.
“Even as we continue to face uncertainties, including the cost-of-living crisis, a tight labour market and the current inflationary conditions, businesses should avoid the temptation of holding back on their spending plans. By acting boldly and bravely and investing in new technologies that will help reinvent their operations, businesses will be more likely to secure growth.”
