West Midlands business confidence falls in September

30 Sep 2025

Published in: Member News
Business confidence in the West Midlands fell 24 points during September to 39%, according to the latest Business Barometer from Lloyds. 
  • Business confidence in the West Midlands fell 24 points to 39% in September.
  • Firms’ optimism in their own trading prospects fell 32 points to 37%, while their optimism in the economy fell 16 points to 41%
  • Overall, UK business confidence dipped 12 points in September to 42%.

Business confidence in the West Midlands fell 24 points during September to 39%, 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 32 points at 37%. When taken alongside their optimism in the economy, down 16 points to 41%, this gives a headline confidence reading of 39% (vs. 63% in August).

Looking ahead to the next six months, West Midlands businesses identified their top target areas for growth as investing in their team, for example through training (56%), evolving their offering, for example by launching new products or services (51%) and entering new markets (32%).

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.

National picture

Overall, UK business confidence fell 12 points in September to 42%

Firms’ confidence in their own trading prospects fell 12 points to 51%, and their optimism in the wider economy fell 11 points to 33%.

The North East was the most confident UK nation or region in September, climbing 13 points to 68%, followed by London (57%).

Sector Insights

Firms across manufacturing, construction, retail and services all saw confidence fall this month. The biggest change was in manufacturing with a decline of 31 points to 31%, a two-year low. Retail sentiment fell 17 points to 40%, its lowest level in four months. Similarly, confidence in the service sector fell six points to 47%, the lowest reading since April. Construction continued to decline for the fourth consecutive month, dropping 5 points to 35%.

Dave Atkinson, Regional Director for the West Midlands at Lloyds, said: “While confidence has fallen, local firms are continuing to explore new areas for growth. And it’s particularly encouraging to see them prioritise investing in their people – something that will have benefits that extend across the regional economy.

“We’ll continue to provide our on-the-ground support as businesses plan and take their next steps.”

Hann-Ju Ho, Senior Economist, Lloyds Commercial Banking, said: “While increased market volatility earlier in the month may have impacted confidence, levels of trading prospects and economic optimism remain above their long-term averages. Businesses may find reassurance that the Bank of England is expected to reduce interest rates further in the next six months, while long-term global bond yields have calmed which, if sustained, may have a positive impact on businesses as we move into the last few months of the year.”


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