The region saw a reversal in business confidence during June, according to the latest Business Barometer from Lloyds Bank Commercial Banking.

In May business confidence across the North West rose by 12 points to 48%.

But the latest data from the bank revealed that it fell five points during June to 43%.

Companies in the North West reported lower confidence in their own business prospects month-on-month, down seven points at 49%. When taken alongside their optimism in the economy, down four points to 36%, this gives a headline confidence reading of 43% (vs 48% in May).

Looking ahead to the next six months, North West businesses identified their top target areas for growth as investing in their team, for example through training (41%), evolving their offering, for example by introducing new products or services (41%) and introducing new technology (36%).

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

Overall UK business confidence fell nine points in June to a net balance of 41%, compared with an eight points jump to 50% in May, its highest level since 2015.

However, this was consistent with levels seen during Q1 2024, before the sharp rise in May, and remained above the long term average (28%).

While businesses reported lower confidence in both their own trading prospects, down 10 points to 44%, and the economy, down seven points to 39%, both remained robust.

Yorkshire and the Humber (48%) was the most confident UK nation or region in June, closely followed by the North East of England (47%) and the East Midlands (46%).

Results across the sectors were mixed in June as three of the four sectors saw a decline in trading prospects.

Construction fell 16 points to 42% and there were other notable decreases in retail (down 14 points to 35%) and services (down 11 points to 46%). Manufacturing, however, bucked this trend, increasing by two points to 51%.

Jenny France, area director in the North West at Lloyds Bank Commercial Banking, said: “Despite a dip in confidence, North West businesses remain resilient. It’s particularly encouraging to see this in firms’ outlook over their own trading prospects, which were the second strongest in the country after London.”