• Swindon & Wiltshire Economy
• Friday February 28 2025
• Author Name: Peter Davison

South West business confidence continues upwards trajectory

Businesses in the South West are continuing to feel more confident about the economy, according to an influential business survey.

Business confidence in the South West rose three points to 42 per cent in February, following a 13-point leap in January to 39 per cent, according to the latest Business Barometer from Lloyds.

Although firms’ confidence in their own trading prospects dipped three points to 54 per cent, their optimism in the economy climbed 10 points to 30 per cent. Taken together, this gives a headline confidence reading of 42 per cent.

Overall, UK business confidence rose 12 points to 49 per cent — its highest level since August 2024.

Meanwhile, a net balance of 32 per cent of businesses in the South West expect to increase staff levels over the next year, up seven points on last month.

Looking ahead to the next six months, South West businesses identified their top target areas for growth as investing in their team, for example through training and development (47 per cent), evolving their offering, for instance by launching new products or services (46 per cent) and introducing new technology such as automation or AI (37 per cent).

Amanda Dorel, regional director for the South West at Lloyds said: “It’s heartening to see South West business confidence continue to rise – buoyed by greater economic optimism.

“Businesses are now setting out clear plans for further growth. Whether investing in their team, diversifying their offering or introducing new technology, we’ll continue to deliver our support to help make their ambitions a reality.”

The Business Barometer, which surveys 1,200 businesses monthly and which has been running since 2002, provides early signals about UK economic trends both regionally and nationwide.

Latest: South West’s business confidence rollercoaster takes a dip