• Swindon & Wiltshire Economy
• Wednesday March 27 2024
• Author Name: Peter Davison

Business confidence in the South West takes another hit – Lloyds

Business confidence in the South West took another hit in March, falling to below the national average according to the latest Business Barometer from Lloyds Bank Commercial Banking.

Companies in the South West reported lower confidence in their own business prospects month-on-month, down nine points from February at 28 per cent.

When taken alongside the optimism in the economy, down 15 points to nine per cent, this gives a headline confidence reading of 18 per cent.

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

Overall UK business confidence registered 42 per cent in March, the same as in February, as firms’ confidence in their own trading prospects (49 per cent) held steady, and confidence in the economy strengthened by one point (35 per cent).

Looking ahead to the next six months, South West businesses identified their top target areas for growth as investing in their team, for example by hiring new staff or investing in training (39 per cent), and introducing new technology, such as automation or AI (32 per cent).

The same proportion (31 per cent) said they planned to enter new markets, for example by diversifying into adjacent markets, or exporting to new ones, or evolving their offering, for example by introducing new products or services.

‘Signs of positive trends’

Amanda Dorel, regional director for the South West at Lloyds Bank Commercial Banking, said: “South West businesses are still operating in challenging, fast-changing economic conditions.

“However, there are signs of positive trends – including slowing inflation – that could help boost confidence if they continue over the months ahead.

“Encouragingly, businesses are still planning to make investments in their teams and their operations to drive further growth, from training to entering new markets.

“For the region’s seasonal economy – particularly hospitality and tourism – many will now be preparing to maximise peak season.”

Pictured: Temple Quay, Bristol

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