Businesses in the North West report record confidence
12th June 2021, 10:08 am
Keynote speakers from ICAEW, pro-manchester, Professional Liverpool and the business community today reflected on the latest results of the ICAEW Business Confidence Monitor, examining the condition of business confidence and its impact on the cities in the North West. Panellists and speakers included Sam Booth, Chief Executive of Pro Manchester, Phil Adams representing Professional Liverpool and Kevin Duffy, Regional Managing Partner, RSM. The event was Chaired by Iain Wright, Managing Director: Reputation & Influence, ICAEW.
ICAEW’s Business Confidence MonitorTM (BCM) for Q2 2021 found that confidence in the North West has risen to its highest ever level, largely because of the progress made in distributing coronavirus vaccines, and expectations of economic growth during the rest of this year and into 2022.[1] Kevin Duffy, RSM’s regional managing partner in the North West, said: ‘The remarkable progress in the vaccine programme, easing of restrictions, and levels of pent-up consumer spend are all driving optimism across the business community in the North West, which is great to see; and highlights positive steps toward regional economic recovery.’
After a year of weak sales, companies reported that they expected domestic sales and exports to increase by 6.4% and 1.8% respectively. Domestic sales fell by 0.4% over the past year, while exports contracted by 1.7% year-on-year, in a sharper fall than the UK average. Profits fell by 0.9 per cent in the past 12 months, but this would have been more severe without a decrease in costs. Both average total salaries and employment levels fell, the latter at the fastest rate since 2012, though the fall would have been more extreme had the furlough scheme not protected jobs.
However, businesses in the North West plan to increase employment by 3.2% over the next year, the second strongest outlook of all UK regions. “Phil Adams said Professional Liverpool and its members are increasingly confident of a strong recovery following the pandemic. Whilst clearly there remains uncertainty, as we emerge from the last 4-5 years where investment has been cautious due to Brexit and then the pandemic, businesses of all sizes are ready to invest, take advantage of a strong local talent pool and gear up to take advantage of strong demand and the desire to “Build Back Better.” Access to capital is generous at present and consumers’ appetite for spending should fuel this growth provided inflationary pressures remain low. Professional Liverpool looks forward to working with its members, as well as pro-manchester, to deliver inclusive growth within the North West as well as the Liverpool City Region. We also remain grateful for the support of Professional Liverpool members over these last months and look forward to celebrating and promoting their future successes.”
Companies in the North West reported a number of growing challenges, with 39% of businesses reporting issues relating to regulatory requirements, possibly due to post-Brexit and COVID-related measures. Some 29 per cent of businesses reported transport problems as a growing issue, likely because of post-Brexit difficulties and recurring periods of lockdown. This was the joint highest rate seen in the North West since the BCM began in 2004, but overall businesses remain largely confident about the next 6 months.
Justin Kyriakou, ICAEW Regional Director for the North West, said: “It’s good to see that businesses in the North West are feeling confident after what has been an extremely difficult year.
“With employment levels, domestic sales and exports predicted to grow, businesses expect a recovery which should prove a boost to the North West’s economy.”
Sam Booth, Chief Executive at Pro Manchester commented “Whilst there may still be challenges and some uncertainty to overcome it is heartening to hear that across the NW regions there is a unified message of positivity. A shared optimism for growth. Change is inevitable but if embraced smartly and effectively NW businesses and the economy are in a great position to bounce back stronger than ever.”
A copy of the recording is available on demand using this link: ICAEW Q2 Business Confidence Briefing – Zoom
The full BCM report for the North West is available at
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