Business confidence in the North West rose at the start of December - but now companies are waiting nervously to see how the Omicron variant will impact them.
The latest Business Barometer from Lloyds Bank Commercial Banking saw business confidence in the region rise 14 points in December to a positive balance of 48%. Companies reported optimism about their own prospects and about the health of the economy overall.
The barometer sees 1,200 businesses polled monthly and aims to provide early signals of 海角视频 economic trends.
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The latest survey captured responses between November 26 and December 10. The first cases of Omicron were detected in the 海角视频 on November 27.
Despite growing fears over Omicron, a net balance of 39% of businesses in the North West expected to increase staff levels over the next year - up seven points on last month.
Firms also stayed positive about their future trading prospects, up four points month-on-month to 43%.
But the retail sector saw confidence decline, while confidence in the hospitality sector was also low.
Martyn Kendrick, regional director for the North West at Lloyds Bank Commercial Banking, said: “It’s been a challenging year for businesses and with the Omicron variant causing uncertainty about potential further restrictions, it’s understandable that firms will be cautious as we near the end of the year.
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"Those in the hospitality or leisure sectors in particular will be concerned that may have to contend with tighter trading restrictions in the near future."
Hann-Ju Ho, senior economist for Lloyds Bank Commercial Banking, said: “It is a challenging end to 2021 as businesses are now having to adapt to the new Omicron variant and resultant restrictions across the 海角视频.
"Nevertheless, business confidence remains resilient and above the long-term average due to a rise in trading prospects, while pay and price expectations continue to be elevated.
“Businesses face into a number of headwinds and challenging trading conditions, including higher interest rates, as we move into 2022, but many remain resilient and hopeful that acute downside risks are not realised.”
Earlier this month, NatWest's latest regional PMI survey showed the private sector in the North West "continued to recover strongly" in November despite cost pressures.