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Business sentiment in the North remains weak, says ICAEW research

Business confidence in Northern England remains weak despite some post-Brexit recovery, according to the latest Business Confidence Monitor (BCM) from The Institute of Chartered Accountants in England and Wales (ICAEW).

The latest Business Confidence Index recorded a score of -0.2 in Northern England, recovering from a reading of -0.13 in the previous quarter.

The research says that expectations for export growth in the North exceed those for domestic sales, as businesses in the region plan to take advantage of sterling’s depreciation.

Keith Proudfoot, ICAEW Northern Regional Director, commented: “Business sentiment in the North remains weak, despite recovering somewhat from the initial shock of the EU referendum result.

“A likely source of comfort for the region is that Nissan has reaffirmed its commitment to the Sunderland car plant.

“There are new opportunities to export in the region as businesses can make the most of the fall in sterling and build on the renowned reputation companies in the North of England have globally.

“However, this is likely to be countered by a rise in inflation with imports becoming more expensive for UK business. This rise in inflation is also likely to squeeze consumer spending as companies in the region expect limited pay rises in the year ahead.”