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Business confidence is on the rise in the North West, according to the latest ICAEW/Grant Thornton UK Business Confidence Monitor (BCM).
During the last fiscal quarter, 100 senior business professionals from across the region were interview and assigned an average confidence score of 13.8.
The result is a marked increase from -11 during the previous quarter, and the highest recorded since 2010.
Paul Christian, President of the Liverpool Society of Chartered Accountants and assurance director at PricewaterhouseCoopers (PwC) LLP in Liverpool, said: “The rebound in confidence is welcome news but there is still an air of fragility to the regional economy.
"The BCM supports the view that the UK’s economy will continue to ‘zig-zag’ over the next 12 months and the North West is not immune to further fluctuations. The key now is to work with businesses to maintain this new found optimism and turn it into sustainable growth”.
Grant Thornton’s North West head of audit, Kevin Engel, added: "Any improvement in the key performance indicators of the Business Confidence Monitor is positive and reflect the sentiments of our own clients and other businesses in the region.
"Turnover and profits are all increasing but nowhere near the rate seen pre-recession and businesses are beginning to realise that this environment may be the norm for some time.
He continued: “Whilst it is still a challenging time, businesses are looking to expand and many are looking overseas to capitalise on new and existing opportunities. The region is home to many dynamic companies that are already delivering high growth in both domestic and global markets – examples like the recent £3.7 million expansion to the US of Cheshire-based Arcis Technology exemplify this.
“That said, although it comes as a refreshing improvement on recent results of the BCM, the dramatic change in confidence typifies just how unpredictable the course of the economy's recovery has been, and will continue to be for the remainder for 2012."
In line with the current confidence levels, business growth in the region strengthened, with gross profits and sales volumes expected to increase by 3.5% over the coming year.
A stronger marketplace meant that just 32% of interviewees found levels of competition to be a greater challenge now than a year ago.
Exports from North West companies are also on the rise, reaching 4.4% expected growth for the coming year. Despite the inevitable drag factor of the weak Euro, the region's customer base is broadening.
The North West now exports more to China than any other UK region.
