• Swindon & Wiltshire Economy
• Friday February 13 2026

South West business activity expands at quickest pace in five months in January

Business activity across the South West expanded at a solid and accelerated pace in January, according to the latest NatWest Growth Tracker data.

The headline South West Business Activity Index – a seasonally adjusted index which measures changes in the region’s output of goods and services – rose from 52.2 in December to 53.5 at the start of 2026, posting its highest reading since last August.

The expansion in output was often linked to improved sales, greater efficiency and efforts to complete outstanding projects in a timely manner.

The latest survey pointed to a sustained, but softer rise in overall new work across the South West. Encouragingly, business confidence improved sharply and the rate of job shedding eased notably on the month.

Faye Long, chair of the NatWest South West Regional Board, said: “Companies across the South West reported a number of positive developments at the start of 2026, according to latest PMI data.

“Firstly, companies saw a steeper and solid upturn in activity levels, which kept the region one of the top-performing areas of the UK.

“Secondly, firms were much more confident about growth over the next 12 months, which in turn drove a slower reduction in employment as more companies held their staff numbers steady amid an improving outlook.

“Lastly, there were tentative signs that inflationary pressures eased at the start of 2026, with both input costs and output charges rising at slower rates.

“Nevertheless, growth in new business softened in the latest survey, and suggests that client spending was relatively lacklustre.

“It will be important to monitor sales and price trends going forward, to see if customer spending recovers amid a brighter outlook and if there are any signs of cost pressures flaring up again.”