• Swindon & Wiltshire Economy
• Monday July 1 2024
• Author Name: Peter Davison

South West bucks the national trend as business confidence rises

Business confidence in the South West rose in June – bucking the national trend – according to the Business Barometer from Lloyds Bank Commercial Banking.

While companies in the South West reported lower confidence in their own business prospects month-on-month, down 11 points at 40 per cent, their optimism in the economy climbed 17 points to 47 per cent.

When taken together, this gives a headline confidence reading of 43 per cent.

A net balance of 32 per cent of businesses in the region also expect to increase staff levels over the next year, up one point 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 (40 per cent), investing in their teams, for example through training (37 per cent), and entering new markets (35 per cent).

The Business Barometer, which surveys 1,200 businesses monthly, provides early signals about UK economic trends both regionally and nationwide.

Overall UK business confidence fell nine points in June to a net balance of 41 per cent. However, this was consistent with levels seen during Q1 2024, before the sharp rise in May, and remained above the long-term average (28 per cent).

Results across the sectors were mixed in June as three of the four sectors saw a decline in trading prospects. Construction fell 16 points to 42 per cent and there were other notable decreases in retail (down 14 points to 35 per cent) and services (down 11 points to 46 per cent). Manufacturing, however, increased by two points to 51 per cent.

Amanda Dorel, regional director for the South West at Lloyds Bank Commercial Banking, said: “South West firms are pressing ahead with their growth plans – be they creating new products or services, or entering new markets.

“As they do so, we’ll continue to be by our side with our funding and support. This includes specialist tools that can help firms tightly manage working capital – something that will give businesses the financial flexibility they need to quickly capitalise on new opportunities as they emerge.”

Latest: Dip in South West business confidence bucks national trend