• Swindon & Wiltshire Economy
• Monday March 31 2025
• Author Name: Peter Davison

South West’s business confidence rollercoaster takes a dip

Business confidence in the South West has taken a dip, falling 19 points in March and wiping out the 16-point gains made in January and February, according to the latest Business Barometer from Lloyds Bank.

Companies in the region reported lower confidence in their own business prospects month-on-month, down 24 points at 30 per cent.

When taken alongside their optimism in the economy, down 15 points to 15 per cent, this gives a headline confidence reading of 23 per cent – down from 42 per cent in February.

The regional picture bucked the national trend, where confidence stood at 49 per cent in March – the same as in February.

Researchers polled 1,200 businesses about their confidence. The data was gathered between March 3 and 17 – ahead of the Spring Statement.

The West Midlands and London were the joint most-confident of any UK nation or region in March (both 62 per cent), followed by the North West (59 per cent).

Confidence rose most among retailers – up seven points to 58 per cent – a post-pandemic high following a particularly strong February for the sector.

In contrast, the manufacturing sector saw the largest decrease in business confidence, declining 12 points to 39 per cent, due to increased concerns about supply chain disruptions.

Construction firms also saw a decline to 48 per cent, and businesses in the service sector saw confidence decline to 47 per cent.

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