Business confidence in the North West fell by two points during October to 53%, according to the latest Business Barometer from Lloyds.

Companies in the region reported higher confidence in their own business prospects month-on-month, up eight points at 66%.

When taken alongside their optimism in the economy, down 11 points to 40%, this gives a headline confidence reading of 53% (vs. 55% in September).

Looking ahead to the next six months, North West businesses identified their top target areas for growth as evolving their offering, for example by introducing new products or services (42%), investing in their team, for example by investing in training (39%) and entering new markets (33%).

A net balance of 47% of businesses in the region also expect to increase staff levels over the next year, up six points on September.

The Business Barometer, which surveys 1,200 businesses monthly, provides early signals about UK economic trends both regionally and nationwide.

Overall UK business confidence dipped slightly in October to 44% – down three points from September’s 47%.

This was driven by marginal falls in firms’ confidence about their own trading prospects (53% vs. 56% in September) and the economy (35% vs. 38% in September).

The North East of England was the most confident UK nation or region in October (63%), followed by London (56%) and the North West (53%).

Firms’ trading prospects pulled back for the third consecutive month in manufacturing to 46%, the lowest level since March. There were also moderate declines of three points in both retail and services to 51% and 57%, respectively.

Expectations in construction bucked the trend, rising to 50%.

Jenny France, area director in the North West at Lloyds, said: “While there has been a slight dip this month, it’s encouraging that confidence in the North West has remained above the national average for the third month in a row.”