Business confidence rises in North West as firms make plans to recruit, Lloyds says

Bank says firms ‘are heading into the summer with increased confidence’

Business confidence has risen in the North West this month, a new study by Lloyds has shown – with more than half of those polled hoping to hire more staff. The latest Business Barometer from Lloyds showed confidence in the region rose 16 points during May, to 54%.

Firms were more confident in their trading outlook, with confidence up 10 points to 67% thanks to improved customer demand, while optimism in the economy overall was up 23 points to 42%. Some 52% of firms in the North West hoped to increase staff levels over the next 12 months, up 18 points on last month.

Business confidence in the North West has averaged 48% over the past 12 months, with a peak of 58% in February 2026 and a low of 27% in September. For the next six months, key investment areas for North West firms included introducing new technology, such as AI or automation, investing in their team through training, and entering new markets.

Chris Whittle, area director in the North West at Lloyds, said: “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.”

Nationally, UK business confidence rose three points to 47% in May. It rose in seven of the UK’s nations and regions, with the North East and West Midlands most confident. It was static in Yorkshire and Humber and fell in Wales, the South West, London and the South East.

Some 66% of those polled across the UK expected stronger output over the year ahead, while 8% predicted weaker activity because of ongoing economic uncertainty and cost pressures.

Amanda Murphy, CEO for 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 stands 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.

“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.”