North West business confidence takes a post-Brexit plunge

Confidence among businesses based in the North West slid dramatically over the last year, according to new data.

The latest UK Business Confidence Monitor (BCM) from the The Institute of Chartered Accountants in England and Wales (ICAEW) found that the region’s confidence fell close to negative territory in Q3 2016.

The North West Business Confidence Index currently stands at +3.9, down from +28.3 this time last year.

However, despite the downturn, businesses in the region have forecast turnover to grow by 4.4% over the coming year following a steady slowdown over the past 12 months.

Close to half (49%) of companies in the North West reported working at full capacity, while 22% expressed concerns over a management skills deficit.

During the next year, the region’s firms said they expect capital spending to increase by 2.4% and their staff by 1.7%.

Commenting on the findings, ICAEW’s North West regional director, Melanie Christie, said: “Businesses in the North West have reacted to the results of the EU referendum as you would expect them to and companies in the region are grateful that the new government was established quickly.

“Decisions will now need to be made swiftly to rebuild confidence in the region which has been following a downward trend over the past year.”

She continued: “Businesses in the region remain resilient in their expectations for the year ahead.

“Time will help to rebuild confidence as they adapt and understand the environment, bearing in mind that the UK will still be in Europe for at least two years.”