• Swindon & Wiltshire Economy
• Friday January 31 2025
• Author Name: Peter Davison

South West businesses start 2025 with increasing confidence

Businesses are feeling more confident about their prospects at the beginning of 2025 than they were late last year, according to an influential business survey.

Business confidence in the South West rose 13 points to 39 per cent in January – up from 26 per cent in December – according to the monthly Business Barometer from Lloyds Commercial Banking.

Firms’ optimism in their own trading prospects climbed 20 points to 57 per cent, while optimism in the economy increased six points to 20 per cent, in the poll of 1,200 businesses.

The survey also found that a net balance of 25 per cent of businesses in the region also expect to increase staff levels over the next year, up 10 points from December 2024.

Looking ahead to the next six months, South West businesses identified their top target areas for growth as evolving their offering, for example by introducing new products or services (45 per cent), entering new markets (37 per cent) and investing in their team, for instance through training (34 per cent).

Amanda Dorel, regional director for the South West at Lloyds, said: “It’s great to see South West business confidence rebound as we kick off the year – with local sentiment now sitting above the UK average for the first time since June 2024.

“As local firms capitalise on this outlook, we’ll continue to be on their side, offering them the support they need to realise their ambitions and drive fresh growth, whether that’s by launching new products and services or up-skilling their team.”