Business confidence on the rise for West Midlands firms

Business confidence appears to be on the increase in the West Midlands, according to new research.

The latest Business Barometer report from Lloyds said confidence had risen by 32 points during March.

Companies in the West Midlands reported higher confidence in their own trading outlook month-on-month, up 31 points at 71 per cent.

When taken alongside their optimism in the economy, up 33 points to 62 per cent, this gives a headline confidence reading of 66 per cent, compared with 34 per cent in February.

A net balance of 48 per cent of businesses in the region also expect to increase staff levels over the next year, up ten points on last month.

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.

This survey was conducted between March 2 and 16 with 1,200 companies, including more than 100 in the West Midlands, with a minimum turnover of £250,000.

Sign up to receive our FREE email newsletters here

Dave Atkinson, regional director for the West Midlands, said: "As business confidence holds this month, we remain focused on supporting firms in the West Midlands, providing the finance, guidance and expertise they may need."

Nationally, overall, UK business confidence rose by 11 points in March to 55 per cent. Firms' confidence in their own trading prospects rose seven points to 60 per cent and their optimism in the wider economy increased 14 points to 50 per cent.

Smaller businesses saw a five-point increase in trading outlook compared to February.

However, larger businesses saw a reduction in confidence in their trading outlook, while SMEs remained stable, up one point in March.

Lloyds said more than 90 per cent of the responses to its survey were received in the first week before the potential impact in the Middle East filtered through to smaller businesses.

Larger firms, by contrast, reported lower confidence, reflecting differing exposures to global conditions.

Commenting on UK national confidence trends, Amanda Murphy, chief executive for Lloyds Business and Commercial Banking, said: "While businesses are adept at reacting to uncertain, fast-moving conditions, this month's results show an interesting divergence in sentiment.

"Smaller businesses may have remained confident because they had not yet seen an immediate change in customer demand or supply chain disruption. Larger firms, however, read global events more cautiously because of their closer exposure to global markets.

"With most responses coming in the very early stages of the Middle East conflict, we'll be watching closely to see how confidence evolves."