Confidence surges for West Midlands businesses
Confidence surged among businesses in the West Midlands this month as the go-ahead for HS2 was given.
Lloyds Bank’s Business Barometer for February saw a 10 point rise in overall confidence levels to 28 per cent
Lloyds Bank Commercial Banking said the region's companies reported higher confidence in the economy at 34per cent, an increase of 21 points from January, while confidence in their business prospects remained at the same level as the previous month at 23 per cent.
Businesses’ hiring intentions remained robust, with a net balance of 28 per cent of businesses in the region expecting to hire more staff during the next year, up three points on last month.
Across the UK, overall confidence was unchanged on last month at 23 per cent as firms’ optimism in the economy and confidence in their own prospects held steady.
The barometer sees 1,200 businesses questioned monthly and provides early signals about UK economic trends both regionally and nationwide.
Amanda Dorel, regional director for the Midlands at Lloyds Bank Commercial Banking, said: “There are signs that the green-light for HS2 may have helped to buoy business confidence in the West Midlands this month. The project will lead to a host of exciting new opportunities in the coming years, creating better links between cities and towns in the region and across the UK.
“A strong pipeline of skills and talent is vital to the future prosperity of the West Midlands’ burgeoning digital, financial services and manufacturing industries, so this is a massive boost to the area.
“We’ll be by the side of local firms to help them make the most of prospects ahead – and we anticipate lending up to £2.5 billion to support Midlands businesses throughout 2020 as part of our ongoing commitment to helping Britain prosper.”
Across the region, a net balance of seven per cent of businesses said they felt that the UK’s exit from the European Union was having a positive impact on their expectations for business activity, up one point on a month ago.
Businesses in London had the highest confidence level at 29 per cent and those in Wales were the least confident, with an overall confidence of minus two per cent, 25 points below the national average.
