• Swindon & Wiltshire Economy
• Wednesday September 9 2026

Economic growth hits six-month high in South West

South West businesses gained momentum in August, with rising sales and renewed hiring across the region, according to the latest NatWest Growth Tracker.

The headline South West Business Activity Index rose from 50.8 in July to 53.0 in August, signalling a solid expansion in private sector activity and reinforcing the region’s position as one of the UK’s strongest-performing economic areas.

Business activity increased for the second month running, with growth reaching its strongest level since February. Firms reported stronger demand, new client wins and growing sales pipelines, helping to drive activity across the region.

The South West also saw its strongest increase in new business so far this year, while companies added staff for the first time since April. Employment growth was the fastest recorded for two years, pointing to growing confidence among local firms.

Faye Long, chair of the NatWest South West Regional Board, said: “The South West is home to some of the UK’s most ambitious, creative and fast-growing businesses, and it’s good to see that reflected in this month’s data.

“Firms across the region are winning new work, growing sales and, importantly, hiring again. That’s a real vote of confidence in the South West economy and the businesses driving it forward. While businesses continue to face cost pressures, it’s encouraging to see confidence strengthening and activity picking up.

“At NatWest, through our Growing Together campaign, we’re committed to backing the people and businesses helping this region thrive, from start-up to scale-up and beyond. The South West has a proud track record of innovation, entrepreneurship and growth, and these figures show there is momentum behind that success.”

The South West recorded a faster rate of business activity growth than the UK average. Only London and Northern Ireland saw stronger output growth in August.

The region also outperformed the UK average on new business growth, with only London and Yorkshire & Humber recording stronger increases in sales.

South West companies increased staffing levels for the first time in four months, with employment growth reaching a two-year high. Scotland was the only other UK nation or region to record job growth during the month.

While cost pressures intensified and rose faster than the UK average, firms were able to keep selling price increases relatively contained compared with businesses elsewhere in the country, say NatWest.