• Swindon & Wiltshire Economy
• Tuesday September 1 2026

Business confidence in the South West jumps as trading outlook and economic optimism surge

Business confidence in the South West rose 25 points during August to 55 per cent, according to the latest Business Barometer from Lloyds, the first time it has outpaced the national average since June 2025.

Companies in the South West reported higher confidence in their own trading outlook month-on-month, up 22 points at 61 per cent.

When taken alongside their optimism in the economy, up 29 points to 49 per cent, this gives a headline confidence reading of 55 per cent against 30 per cent in July.

South West firms’ confidence in the economy was driven by a 29-point increase, while confidence in their own trading outlook rose 22 points to 61 per cent.

A net balance of 40 per cent of businesses in the region also expect to increase staff levels over the next year, up 24 points on last month.

Business confidence in South West still sits above the 12-month average of 34 per cent, with its previous highest figure of 48 per cent in March 2026.

Looking ahead to the next six months, South West businesses identified their top target areas for growth as entering new markets (49 per cent), investing in their team, for example, through training (46 per cent), and evolving their offering, for example by introducing new products or services (31 per cent).

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.

Amanda Dorel, regional director for the South West at Lloyds, said: “August’s significant increase in confidence is an encouraging sign for South West businesses, driven by stronger expectations both for their own trading prospects and the wider economy.

“It’s also positive to see more firms planning to grow their teams. With businesses focused on reaching new markets and developing their people, there’s appetite to invest for growth.

“The priority now will be turning that renewed confidence into action and ensuring that businesses have the support and finance to achieve their ambitions.”