• Swindon & Wiltshire Economy
• Tuesday June 23 2026

Most south west business ‘able to withstand economic shocks’

South West businesses are showing resilience in response to global uncertainty, with 80 per cent saying they are confident in their ability to withstand economic shocks, according to new findings from the Lloyds Business Barometer.

More than half (60 per cent) of South West businesses say they have been impacted by recent global uncertainty, with 52 per cent citing rising costs and 34 per cent citing supply chain disruption as the main consequences.

Despite this, 47 per cent of firms said they still expect to grow this year.

The Lloyds Business Barometer survey is made up of 1,200 UK firms from across all regions and sectors.

The latest research reveals that South West businesses are adapting, with 50 per cent of firms actively adjusting their strategy in response to global uncertainty.

Among those taking action, 62 per cent have introduced cost-saving measures, 44 per cent have delayed or reduced their expansion plans and 27 per cent have locked in commodity, raw material or input prices.

South West businesses are using financial tools to help manage volatility, with 70 per cent of companies saying they have the right financial tools and support to mitigate economic shocks.

Of those with appropriate support, 46 per cent use cashflow forecasting, 40 per cent use digital banking tools and 32 per cent use trade finance.

Amanda Dorel, regional director for the South West at Lloyds, said: “South West businesses are continuing to show real resilience in the face of global uncertainty.

“While rising costs and supply chain disruption are creating challenges, it’s encouraging to see firms taking proactive steps to manage volatility and protect their growth ambitions.

“By introducing cost-saving measures, reviewing expansion plans and using tools like cashflow forecasting and digital banking, businesses are putting themselves in a stronger position to navigate the months ahead.

“The challenges are clear, but these findings show that many South West firms remain confident, adaptable and ready to capitalise on opportunities as they emerge.”

Amanda Murphy, CEO for Lloyds Business and Commercial Banking, said: “What we’re seeing from businesses is not just resilience, but decisive action in the face of ongoing uncertainty.

“Across sectors like manufacturing, logistics and food production, firms are taking practical steps to protect their operations – increasing inventory and locking in costs where they can.

“Many also recognise that global supply chain challenges and energy market volatility are structural issues, not temporary blips. In response, businesses are managing costs, securing supply and building greater resilience into their operating models.

“That puts greater focus on working capital and funding, but it also reflects a confidence. Firms are backing their ability to navigate uncertainty and continue to grow.”

Photo by David Venegas on Unsplash