North West bucks trend as business confidence rises

Confidence among North West businesses has risen in the last quarter despite a fall overall across England, according to a report from the Institute of Chartered Accountants in England and Wales (ICAEW) and Grant Thornton.

According the ICAEW, a sharp rise in sales volumes across the North West, up 5.5% on Q4 2013, has contributed to a buoyant growth in profits.

Key findings for Q4 2014 suggests that the economy will expand at a quarter-on-quarter rate of 1%, while turnover and profit growth have broadly stabilised at levels higher than seen in the past five years.

Salaries have started to creep up in real terms, although this is largely down to falling inflation, as annual pay rises remained steady this quarter.

Commenting on the figures, Graham Lamont chief executive of Lancaster-based chartered accountancy firm Lamont Pridmore said: “We are encouraged that businesses in the North West are more confident than their counterparts across the rest of the North and the UK as a whole.

Phil Elwood, managing director of the firm’s Lancaster office commented: “With the right support, business can put in place the right processes to ensure a profitable future, making most of the opportunities available to them as the economy continues to grow. “Our advice to businesses looking to expand is to seek the right sort of investment and look into ways of maximising profits and reduce outgoing costs."