North West business confidence plummets

Business confidence across the North West has fallen into negative territory after seeing a downward trend for the last two years, according to new data.

The latest Business Confidence Monitor (BCM) from the Institute of Chartered Accountants in England and Wales (ICAEW) found that growth expectations have fallen as companies remain cautious about future improvements to the region’s economic conditions.

The BCM report recorded a Business Confidence Index score of -9.5 in the North West in Q4 2016, down from +21.3 this time last year.

Profits were found to have risen by 3.3% in comparison to 12 months ago, but businesses now anticipate profit growth to slide to 2.9% for the year ahead.

North West firms likewise forecast domestic sales growth to slow to 3.1% in 2017. This year, that figure stood at 3.8%.

Capital spending growth is also predicted to drop to just 1.2% next year, compared with 1.7% for Q4 2016.

ICAEW’s North West director, Melanie Christie, said: “Business confidence in the North West has fallen into negative territory this quarter as growth expectations in the region have weakened.

“Businesses in the North West have made cautious predictions for growth in the year ahead and are nervous when it comes to investment.”

She continued: “Such modest growth is a concern, particularly when businesses in the region have highlighted marketplace competition as a growing constraint.

“Businesses in the North West now need to see commitment from Government to the Northern Powerhouse vision and a robust economic plan that puts the North at the forefront of infrastructure spending plans to fuel confidence and further growth.”

Of the businesses surveyed, more than one in three (36%) cited marketplace competition as a growing concern.

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