Business confidence in the South West increased during June 2019 despite continued Brexit uncertainty giving firms the jitters, a new report says.
Lloyds Bank’s Business Barometer for June 2019 showed that overall confidence for private sector companies in the South West increased by eight points to 8%.
The survey, from Lloyds Bank Commercial Banking , also showed that businesses in the South West reported higher confidence in their prospects, which rose four points to 15%.
There was also higher economic optimism, which rose 12 points to 1%. Together, this gave an overall confidence of 8%.
However, across the region, a net balance of 24% of businesses said they feel the UK’s exit from the European Union is having a negative impact on their expectations for business activity, up two points on a month ago .
Nevertheless, businesses’ hiring intentions showed a net balance of 6% of businesses in the region expecting to hire more staff during the next year, down two points on May 2019.
Across the UK, overall confidence grew three points to 13% as firms’ confidence in their own prospects grew five points to 22%, while their economic optimism also grew by three points to 5%.
The Business Barometer questions 1,200 businesses monthly and provides early signals about UK economic trends both regionally and nationwide.
Adam Rainey, regional director for the South West at Lloyds Bank Commercial Banking, said: “It is encouraging to see firms’ confidence rise this month after a downward blip in May, as the resilience of the region’s business community has prevailed again.
“We are here to stand by the side of businesses as they navigate their way through any current uncertainties towards reaching their long-term growth potential. This is why we have pledged to lend £1.5billion to South West companies this year.”
Nationally, businesses in the West Midlands showed most confidence at 25%, ahead of those in London, where it was18%.
Those in Yorkshire and Humber are the least confident, with an overall confidence of 5%, down 18 points and eight points below the national average.
Business confidence increased in the retail sector, up by 11 points to 22%. Gains were also seen in construction, up five points to 17%, and in the services sector, up five points to 12%.
In contrast, confidence in the manufacturing sector fell by 11 points, bringing June’s figures back in line with the low seen earlier this year.
Hann-Ju Ho, senior economist, Lloyds Bank Commercial Banking, said: “While overall business confidence is still below the long-term average, it is encouraging to see a rise for the third time in four months since the low in February.
“Firms are showing more optimism both in their trading prospects and the overall economy, with levels rising in the retail, construction and services sectors this month. Ongoing global trade tensions, however, appear to have weighed on manufacturing confidence.”
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