The findings, which are taken from the quarterly index which collates anonymised client data from over 900,000 UK businesses, suggest local firms see greater control over investment, infrastructure, skills and growth priorities as an important way to unlock the region’s potential.
This is particularly relevant for the West Midlands as the home of leading businesses in key growth sectors such as advanced manufacturing, automotive innovation, professional and financial services, and technology and life sciences.
The Business Prosperity Index also points to a more positive national outlook, with 63 per cent of UK businesses reporting confidence in the UK economy and 86 per cent optimistic about their own prospects.
Despite continued cost pressures and changing market conditions, many firms are looking ahead to growth.
Nationally, more than half (56 per cent) of UK businesses say they plan to increase investment over the next 12 months, while 46 per cent are considering taking out new finance to support their ambitions.
In the West Midlands, businesses continued to trade steadily during the second quarter. While overall money flowing in and out of firms fell slightly, the decline was smaller than the UK average, suggesting the region remained relatively resilient despite challenging conditions.
Smaller businesses showed particularly encouraging signs of strength. Barclays Business Banking customers in the region saw increases in both incoming (up 0.5 per cent) and outgoing payments (up 0.3 per cent), pointing to continued customer demand and day-to-day activity.
Lending to smaller businesses also increased (up 1.2 per cent), indicating an appetite from firms to still invest in growth rather than putting plans on hold.
However, businesses remain realistic about the challenges ahead. Economic uncertainty, competitive pressures and rising operating costs were identified as the region’s biggest concerns during the quarter.
The findings point to a regional economy that is still facing pressure, but where many businesses remain confident about future growth and the opportunities that could come from more locally focused decision-making.
Paul Faulkner, vice chair of the Midlands, Barclays, said: “It is encouraging to see strong support from West Midlands businesses for devolution. Greater regional decision-making can help ensure local priorities are better reflected in the decisions that shape growth across the region.
“That confidence reflects the resilience we continue to see across the West Midlands, particularly among smaller businesses that are continuing to operate and invest despite a challenging backdrop.
“At Barclays, we are committed to helping firms build on their strengths and grow with confidence.”
To celebrate the launch of the report, Barclays brought together dozens of leaders from the West Midlands business community to dissect and discuss the findings, and hear from guest speakers including Raj Kandola, deputy CEO at Greater Birmingham Chambers of Commerce.
Reflecting on the event, Raj Kandola said: “It was a pleasure to join the inaugural Barclays Prosperity Index event and hear first-hand from a range of high-profile business leaders as they respond to an evolving political and economic backdrop.
“The granular data Barclays' gathers from its thousands of customers is absolutely vital in painting a clear and accurate picture of the real time challenges facing firms right now. Nevertheless, there was a palpable sense of optimism in the room which bodes well for the future and opportunities that we need to grasp as a region.”
To reinforce its commitment to supporting the growth of UK businesses, Barclays has launched its Business Prosperity Fund.
Available to new and existing Business Banking customers and UK Corporate Banking clients across the UK, it forms part of Barclays’ £22bn lending commitment for 2026, supporting lending and refinancing for eligible projects.
