• Swindon & Wiltshire Economy
• Tuesday March 11 2025
• Author Name: Peter Davison

South West business activity continued growth in February – Natwest

Business activity across the South West rose slightly for the second straight month in February, according to the latest Growth Tracker Business Activity Index from Natwest.

The marginal uptick in output occurred despite relatively muted demand conditions, with firms registering a further drop in new business.

However, costs continued to rise sharply, which led firms to shed staff at a quicker pace.

Looking ahead, though, firms expressed much greater optimism around the 12-month outlook for output.

Growth of output was often attributed by companies polled by Natwest researchers to investment in new sites and the commencement of new projects.

The amount of new work received by South West private sector firms fell for the third successive month in February.

There were reports that relatively muted market conditions and tighter client budgets had dampened demand.

When assessing the 12-month outlook for output, South West companies expressed a much greater level of optimism in February.

The degree of positive sentiment picked up to the highest in four months and was above the UK-wide average – and second only behind the West Midlands.

Planned company expansions, new product releases and projections of higher customer demand all supported growth forecasts.

Faye Long, chair of the NatWest South West Regional Board, said: “Latest PMI data indicated that South West private sector firms saw a further slight uplift in overall activity levels in February, but demand conditions remained sluggish overall.

“While the current climate looks subdued, particularly with further job cuts, it was encouraging to see business confidence rebound in February.

“Moreover, out of 12 UK regions, only firms in the Midlands were more upbeat about the year-ahead outlook.

“Inflation remains a key concern, however, with the latest survey showing price pressures stuck at historically elevated levels.”

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