Business confidence in the West Midlands has improved, but still remains weak, according to a survey of bosses.
Sentiment tracked by ICAEW’s Business Confidence Monitor (BCM) for the West Midlands, suggested that confidence was improving, though it was still behind the UK average.
Only businesses in the North West, Scotland and London felt less confident, due to concerns about high inflation and rising interest rates.
UK inflation slowed last month on the back of lower petrol prices but remained in double figures as budgets continue to come under pressure.
Company sentiment has, however, been helped by a healthy growth in domestic sales, while projections for the year ahead are expected to surpass the national average, according to the survey.
Exports grew at a less favourable rate, but businesses anticipate a stronger rise over the next 12 months, possibly reflecting the depreciation of sterling against the euro, a small pick-up in European markets and the reopening of the Chinese economy, the report found.
ICAEW said that to build on the confidence reading, the Government must form an ambitious plan to inject resilience into the UK economy to boost business confidence and deliver long-term economic growth.
Justin Kyriakou, ICAEW Midlands regional director, said: “Though business confidence in the West Midlands has returned to positive territory, it remains weak and continues to trail the national average.
“While it’s encouraging that labour market challenges and cost pressures appear to be easing, there’s still plenty to be cautious about as companies become increasingly concerned over high inflation and rising interest rates.
“To capitalise on the jump in confidence, the government must fix the fundamental problems facing the UK economy with a plan to deliver long-term economic growth by injecting resilience and stability into the UK.”
.
