Business confidence in the North West has surged this month, according to a new study by Lloyds Bank, with more than half of surveyed firms planning to increase their workforce. The latest Business Barometer from Lloyds revealed that confidence in the region climbed by 16 points during May, reaching 54 percent.
Firms reported greater confidence in their trading outlook, with a 10-point increase to 67 percent, driven by improved customer demand. Optimism about the overall economy also rose by 23 points to 42 percent. Notably, 52 percent of businesses in the North West expressed intentions to boost staff levels over the next 12 months, an 18-point jump from the previous month.
Over the past year, business confidence in the North West has averaged 48 percent, peaking at 58 percent in February 2026 and hitting a low of 27 percent in September. Looking ahead to the next six months, key investment priorities for regional firms include adopting new technologies such as AI and automation, investing in employee training, and expanding into new markets.
Chris Whittle, area director for the North West at Lloyds, commented: “Businesses are heading into the summer with increased confidence during what is expected to be a busy time of year, with the ambition to hire and help create new job opportunities for people across the North West.”
On a national level, UK business confidence edged up by three points to 47 percent in May. Confidence rose in seven of the UK’s nations and regions, with the North East and West Midlands showing the highest levels. It remained static in Yorkshire and the Humber, while declining in Wales, the South West, London, and the South East.
Across the UK, 66 percent of respondents anticipated stronger output over the coming year, while 8 percent predicted weaker activity due to ongoing economic uncertainty and cost pressures.
Amanda Murphy, CEO of Lloyds Business and Commercial Banking, said: “Business confidence edged up modestly in May, suggesting firms are beginning to steady after April’s decline. This month, confidence levels from businesses in the North East particularly stand out. It's also reassuring to see that increased confidence from the construction sector has brought them more in line with their retail, services, and manufacturing counterparts.”
She added: “Across the UK, each region and nation presents unique opportunities and drivers of growth – whether that’s clean energy in the North East, advanced manufacturing in the West Midlands, or tourism and hospitality in Scotland.”
