More than nine out of 10 (92%) of private business owners in the North West are confident about delivering growth in the second half of 2026, according to KPMG.

At the start of 2026, KPMG's annual Private Enterprise Barometer surveyed 1,500 privately owned businesses across the UK, including 142 in the North West, spanning sectors such as professional services, financial services, technology, industrial manufacturing and retail, to understand their growth ambitions and priorities for the year ahead.

Six months on, following a challenging period for the UK and global economy amid instability in global energy markets, persistent inflation and trade restrictions, KPMG returned to these same businesses to understand how changing economic conditions have influenced their outlook.

At the beginning of the year, 91% of private businesses in the North West expressed confidence in their growth prospects for the next 12 months. By the mid-year mark, this sentiment has grown marginally with confidence levels rising by one percentage point to 92%. By mid-year, that figure had edged up to 92%, 12 percentage points above the UK average, cementing the North West's position as one of the UK's most confident business regions.

Investment priorities

This confidence is translating into investment. Technology remains a leading investment priority for the North West-based businesses, with three-quarters (76%) of respondents identifying areas such as artificial intelligence (AI), cyber security and broader digital transformation as key focuses. This is ten percentage points above the UK average (66%) and up 35-percentage points from 41% at the beginning of the year, signalling a dramatic shift towards long-term productivity and innovation in the region.

Diversification also remains firmly on the agenda and businesses are increasingly looking overseas for growth. Nearly three-quarters (73%) of respondents across the region are looking to expand their operations overseas, up from 63% at the beginning of the year, and 12 percentage points higher than the national average.

Of businesses considering how to fund their growth plans, appetite for private equity investment is more subdued compared to the beginning of the year, with more than two-fifths (42%) of respondents identifying private equity as a way to fund their growth ambitions – slightly below the UK average of 45% and down six points compared with 48% six months ago. Instead, more than half (58%) of businesses are turning to their own balance sheets to help fund their growth plans, reflecting a growing preference to retain control and rely on internal resources amid ongoing economic uncertainty.

Looking ahead

While businesses remain optimistic, challenges continue to persist. Over two-fifths (43%) of businesses in the North West identified inflation and ongoing cost pressures as the two biggest short-term risks facing their organisations. At the same time, firms are looking to policymakers to help strengthen long-term resilience. When asked about the Autumn Budget, of the region’s firms 51% would like to see technology adoption and digital capability prioritised by the incoming Chancellor.

Looking further ahead, the wider economic picture remains front of mind, with over half of respondents (56%) pointed to the UK’s economic outlook and productivity growth as the biggest external factor shaping decisions around investment, growth and exit planning.

Chris Stott, Manchester Office Senior Partner at KPMG UK, said: “The North West continues to stand out for the confidence and ambition of its private businesses. While many firms across the UK have become more cautious over the past six months, businesses here are continuing to back growth, invest and look ahead with confidence.

"The region is also entering a new chapter, with Greater Manchester preparing for new mayoral leadership following Andy Burnham's departure, while the city is expected to play an increasingly prominent role on the national stage under new Prime Minster Andy Burnham's government. At times of political transition, it's particularly reassuring to see businesses demonstrating resilience and maintaining their focus on long-term growth."

"That confidence is translating into action. Businesses across the region are investing in AI, cyber security and digital transformation at significantly higher levels than the UK average, while many are also looking overseas for new opportunities. With the right policy environment to support innovation, investment and productivity, the North West is well placed to build on its position as one of the UK's leading growth regions."

Mark Booth, Liverpool Office Senior Partner at KPMG UK, said: "We're also seeing this confidence play out on the ground in Liverpool.

"Liverpool has built real momentum in recent years, with growing inward investment, a thriving innovation ecosystem and strengths in sectors such as life sciences and advanced manufacturing. It will also be interesting to see how Andy Burnham, a long-standing advocate for the Liverpool City Region and a proud Everton fan, champions the city region on the national stage as Prime Minister.

"Businesses here have every reason to be optimistic, but they'll need to continue investing if they're to make the most of that momentum.”

The national outlook

Nationally, private businesses outlined plans to continue to invest in technology and skills as part of efforts to boost growth after KPMG UK’s mid-year Private Enterprise Barometer revealed a dip in growth confidence due to ongoing UK and global uncertainty.

The survey found that 80% of business owners were confident in their firm’s growth prospects, down from 87% when asked earlier this year.

Overall, technology, including AI, remains the main investment priority signalling this is now shifting towards practical implementation of tech like AI to improve productivity, efficiency, and growth.

Looking ahead to the Autumn Budget, private businesses said the areas most in need of attention to help bolster growth are the faster adoption of new technology and boosting digital capability, growth-focused investment and the continued focus on a renewed industrial strategy.

Euan West, Head of KPMG Private Enterprise in the UK and EMA, said: “2026 has continued to present private businesses with a challenging operating environment, shaped by uncertainty both at home and abroad.

“Against that backdrop, it is encouraging that eight in 10 business leaders remain confident about their growth prospects. While confidence has eased since the end of last year, the overall picture remains one of resilience and determination.

“What stands out most is how private businesses are responding. Rather than pulling back, they are investing in skills, technology and the capabilities that will help them remain competitive and unlock future growth.

“These results highlight a business community that is realistic about the challenges ahead but confident in its ability to overcome them.

“Private enterprise leaders are entrepreneurial, action-oriented and focused on what they can control. They are not waiting for conditions to improve; they are getting on with the job of creating growth.”