Businesses in the North West among UK’s most confident

North West companies are among the most confident in the UK, according to a new report.

The latest Business Confidence Monitor (BCM), from the Institute of Chartered Accountants in England and Wales (ICAEW) and professional services firm Grant Thornton, found that despite a slight dip in confidence, the region’s companies are confident that business will pick up in 2016.

During the last quarter of 2015, North West businesses reported a confidence score of +21.3, which is higher than the national figure of +15.6.

ICAEW’s North West regional director, Melanie Christie, said: “Activity in the region has slowed over the past year, however turnover growth remains at relatively robust levels and businesses have strong expectations for the next 12 months.

“Reflecting the steady growth, good rates of hiring have continued.”

She added: “However, looking ahead to 2016 I predict measures such as the Living Wage, which comes into effect next year, will add pressure to businesses and employment rates may slow.”

While turnover and profit growth remained robust, both areas slowed during Q4 in comparison to the same period in 2014.

Average turnover growth stood at 4.1% (down from 5.2% in Q4 2014), while profit growth fell to 3.5% (from 4.7%).

Elsewhere, North West firms increased their staff count by 2.2% over the last 12 months.

Carl Williams, managing partner at business advisors Grant Thornton’s managing partner in the North West, said: “It’s almost a year since David Cameron and George Osborne were in Manchester making a keynote speech about ensuring that the economic future of the north is bright and closing the economic gap between north and south.

“Like many of our clients, we’d welcome more specific funding commitments in 2016. Hard evidence of infrastructure investment and progress towards a Northern Powerhouse would give a sustained boost to business confidence.”