Business confidence in North West falls for third consecutive quarter, but investment plans remain strong, says a leading Cumbrian accountants
Lamont Pridmore says that the latest Business Confidence Monitor shows confidence in the North West has fallen for the third consecutive quarter.
The BCM is produced by the Institute of Chartered Accountants in England and Wales, based on 1,000 telephone interviews among ICAEW chartered accountants covering a range of UK sectors, regions, and company sizes.
The survey revealed that confidence in the region dipped to +1.6 in Q4 2024, dropping from +5.7 in Q3 2024, and now sits below the historical average (+5.9).
While confidence in the North West remains above the national average (+0.2), rising tax burdens and setbacks in key sectors such as Retail & Wholesale and Manufacturing & Engineering have had a notable impact on business owners’ outlooks.
However, despite this decline in confidence, the survey indicated that the region is still showing signs of growth.
Domestic sales have grown at the fastest rate in the UK for the last three quarters, reaching 5.4 per cent in Q4, with a further increase expected in the year ahead.
Businesses in the North West also reported the highest profit growth in the UK, with projections for even more substantial profit growth in the coming year.
“The decline in confidence is concerning but not unexpected given the recent economic challenges,” said Graham Lamont, chief executive of award-winning ICAEW firm Lamont Pridmore.
“However, from our own experience, businesses in the North West are showing resilience by continuing to invest in their future.
“Capital investment growth remains the highest in the UK, and companies anticipate sustained growth in key areas, including R&D, which is projected to be the strongest across the country.”
The survey also highlighted that businesses in the region are facing ongoing challenges, with 48 per cent of North West businesses reporting regulatory requirements as their most prominent issue.
However, the outlook for employment remains positive, with job creation continuing to rise at a pace well above the regional historical average and wage growth also remaining strong.
“Despite the challenges presented, businesses are still actively searching for ways to adapt and position themselves for expansion and success in achieving their financial goals.
“With the right support and expert advice from accountants like Lamont Pridmore, companies can develop robust financial and business strategies that prepare them for economic uncertainties and help sustain their growth,” added Graham.
For more information about Lamont Pridmore, please contact 0800 234 6978 or visit www.lamontpridmore.co.uk.
