West Mids businesses hesitant to invest, says report
West Midlands businesses are still reluctant to invest for future growth. That's the finding of Lloyds TSB Commercial Finance's Business in Britain report.
According to the survey, the region's businesses still lack the confidence to invest for growth, as weak domestic demand and cost pressures continue to dent profits.
The study of more than 150 businesses in the West Midlands shows that 16 per cent expect to increase their level of investment over the coming six months, while 19 per cent plan cuts.
Businesses surveyed also said the biggest risk they face is a weakening domestic market. However, more than two fifths (40 per cent) said they expect to boost exports over the coming six months.
John Robson, regional director for Lloyds TSB Commercial in the Midlands and north, said: "With domestic demand in the doldrums, and confidence still muted, it is understandable that firms in the West Midlands are worried about investing for the future. But the fact is that if businesses do not invest it could damage an already fragile recovery and result in even slower growth."
