• Swindon & Wiltshire Economy
• Friday January 30 2026

South West business confidence dips slightly – but hiring intentions rise

Business confidence in the South West dipped slightly during January, according to the latest Business Barometer from Lloyds Bank Commercial Banking.

But there was better news on the jobs front, with more firms saying they intended to increase staff levels over the next year.

Business confidence in the region fell by one point during January to 28 per cent, according to the monthly Business Barometer from Lloyds.

Companies in the South West reported marginally lower confidence in their own business prospects month-on-month, down two points at 39 per cent.

When taken alongside their optimism in the economy, remaining stable at 17 per cent, this gives a headline confidence reading of 28 per cent, against 29 per cent in December 2025.

A net balance of 23 per cent of businesses in the region said they expect to increase staff levels over the next year, up 10 points on last month.

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 (43 per cent), investing in their team, for instance by investing in training (38 per cent) and introducing new technology (32 per cent).

Amanda Dorel, regional Director for the South West at Lloyds, said: “While confidence has softened slightly this month, it’s encouraging to see South West businesses maintaining their focus on growth.

“This month’s data shows that firms continue to invest in the fundamentals that drive long-term success, such as developing their teams, evolving what they offer and adopting new technologies.

“We’ll continue to provide our support to help South West firms and make the investments they need to move forward.”

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.