• Swindon & Wiltshire Economy
• Monday May 12 2025

Economic climate continues to dominate the concerns of West business leaders

Economic conditions continue to worry business leaders in the West, according to the findings of a major survey.

Over three quarters (76 per cent) of business leaders in the region ranked the economic climate as their top concern, according to the findings of the Business West quarterly economic survey.

Economic conditions replaced taxation, which was cited as the biggest concern in the Q4 2024 survey following the rise in employers NI contributions announced by chancellor Rachel Reeves in her Autumn Budget.

Only 31 per cent of respondents said they were confident about the health of the UK economy over the next 12 months. However, 45 per cent said they were confident about their own prospects – suggesting that business owners are successfully adapting to the current climate.

Looking ahead to the next quarter, 42 per cent of respondents thought profitability would decline, while only 30 per cent expected to see an uptick.

Over Quarter 1, 40 per cent of businesses had increased their prices. Only six per cent had lowered their prices.

Domestic and international sales both remained under pressure, with 21 per cent of survey respondents saying domestic sales had grown, while 35 per cent said they had declined over the past three months.

Among exporters, 12 per cent said international sales had grown, while 19 per cent had seen a decline in business from overseas markets.

The survey also found persistent recruitment challenges, with 63 per cent struggling to find suitable candidates, especially for skilled or managerial roles.

The quarterly economic survey is a leading indicator, often picks up changes in the economy long before other surveys and official statistics and consistently mirrors trends in official data.

It is closely watched by both UK Government and the Bank of England.

Business West is currently surveying businesses in Bristol, Bath, Gloucestershire and Wiltshire for the Q2 survey. Take part at https://www.smartsurvey.co.uk/s/Y3S1DX/