West Midlands business confidence falls in October

28 Oct 2024

Published in: Member News
See the latest data and statistics from Lloyds Business Barometer in October.
  • Business confidence in the West Midlands fell 23 points to 36% in October
  • Firms’ optimism in their own trading prospects fell 13 points to 52%, while optimism in the economy dropped 33 points to 20%
  • Overall UK business confidence dipped three points in October to 44%

Business confidence in the West Midlands fell 23 points during October to 36%, according to the latest Business Barometer from Lloyds.

Companies in the West Midlands reported lower confidence in their own business prospects month-on-month, down 13 points at 52%. When taken alongside their optimism in the economy, down 33 points to 20%, this gives a headline confidence reading of 36% (vs. 59% in September).

Looking ahead to the next six months, businesses in the West Midlands identified their top target areas for growth as evolving their offering, for example by introducing new products or services (43%), entering new markets (40%) and introducing new technology, such as AI or automation (35%).

The Business Barometer, which surveys 1,200 businesses monthly, provides early signals about UK economic trends both regionally and nationwide.

National picture

Overall UK business confidence dipped slightly in October to 44% - down three points from September’s 47%.

This was driven by marginal falls in firms’ confidence about their own trading prospects (53% vs. 56% in September) and the economy (35% vs. 38% in September).

The North East of England was the most confident UK nation or region in October (63%), followed by London (56%) and the North West (53%).

Sector Insights

Firms’ trading prospects pulled back for the third consecutive month in manufacturing to 46%, the lowest level since March. There were also moderate declines of 3 points in both retail and services to 51% and 57% respectively.

Expectations in construction bucked the trend, rising to 50%.

Dave Atkinson, Regional Director for the West Midlands at Lloyds, said:

“Although confidence fell during October, West Midlands firms are still setting out clear plans to drive further growth.

“Whether they’re targeting investments in technology, or looking to break into new markets – in the UK or overseas – we’ll continue to be by their side with our support and insight.”

Hann-Ju Ho, Senior Economist, Lloyds Commercial Banking, said:

“Although overall business confidence dipped in October, it follows a sustained period of significant optimism, and business sentiment remains above historical levels. Encouragingly, many businesses remain confident in their own trading prospects, and the increase in hiring intentions suggests more employers will want to grow their workforce.

“Businesses’ broader economic outlook continues to reflect this rounded picture, and as they move into the final part of the year, they will look to manage these considerations effectively.”

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