West Midlands business growth expectations appear brighter for 2025

 Nearly seven in ten (69 per cent) firms expect to see their turnover increase in the year ahead, up from 57% polled in December 2023. 

Of these, 29 per cent expect to see their revenue rise by between six and 10 per cent over the next 12 months, with more than a quarter (28 per cent) expecting it to grow by even more.

Meanwhile, nearly three quarters (74 per cent) of businesses are confident they will be more profitable in 2025. 

This compares to 68 per cent who said the same last year.

While general revenue and profitability growth is firms’ top priority at 63 per cent, some 34 per cent said they will be targeting improving their productivity, and 31 per cent will be aiming to enhance their technology, such as automation or AI. 

Meanwhile, more than a quarter (27 per cent) want to improve their environmental sustainability.

To support their goals, 29 per cent will be investing in staff training, while 28 per cent will be investing in new technology generally, with a further 24 per cent planning to make specific investments in AI.

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.

Dave Atkinson, regional director for the West Midlands at Lloyds, said: “West Midlands businesses are set to hit the ground running in 2025, with clear plans and ambitions in place. 

"And it’s incredibly encouraging that more businesses are expecting growth over the year ahead. We’ll continue to be by the side of our region’s businesses next year to help them make the most of new opportunities that arise.”