• Swindon & Wiltshire Economy
• Tuesday July 8 2025

South West business activity continues growth trajectory – Natwest

There was a stronger rise in business activity across the South West in June, which in turn was supported by a renewed upturn in new orders, according to a new report.

The latest NatWest Growth Tracker South West Business Activity Index increased from 51.3 in May to 53.9 in June, signalling a solid and accelerated rise in output.

The rate of expansion was the steepest seen since March and extended the current sequence of growth to six months.

The South West recorded the second-fastest increase in output of all 12 monitored UK regions, behind the East of England.

Where firms cited an increase in activity, this was often linked to improved customer demand and greater intakes of new orders, says the report.

Some companies also noted that customers had pushed forward with new projects after previously being hesitant to commit.

Although companies across the region continued to forecast an increase in output over the next year, the degree of optimism slipped from May’s seven-month high and was slightly below the historical trend.

While firms were often hopeful that planned investment, improved market conditions and rising sales would boost activity levels, some expressed concerns over relatively subdued economic conditions both at home and overseas.

Private sector employment across the South West decreased for the eighth month in a row in June.

There were a number of reports that companies had trimmed their headcounts in order to reduce costs.

The latest survey data pointed to another sharp increase in average operating expenses at South West private sector businesses in June.

This was despite the rate of inflation moderating to a three-month low.

Prices charged for goods and services in the South West also increased at a softer pace in June. Though solid, the rate of inflation was the slowest seen since February 2021.

Faye Long, chair of the NatWest South West Regional Board, commented: “The latest Growth Tracker data indicated that the South West performed strongly in June, with businesses across the region seeing a solid increase in output.

“The upturn was supported by signs of stronger demand conditions, with total new orders expanding for the first time since March.

“While output and sales improved notably, business confidence around the year-ahead dipped slightly at the end of the second quarter.

“Lingering uncertainty around the economic outlook both at home and globally had reportedly led firms to be more cautious around expectations for future output.

“Cost pressures also remained sharp, despite easing since May, while competition for new work weighed on overall pricing power.

“As a result, firms looked to cut costs where possible, driving a further reduction in employment.”

Latest: South West business growth slows amid renewed drop in sales