• Swindon & Wiltshire Economy
• Friday August 29 2025

South West business confidence dips, bucking national trend

Business confidence in the South West fell five points during August to 39 per cent, bucking the national trend which saw businesses feeling more confident.

Companies in the South West reported lower confidence in their own business prospects month-on-month, down three points at 44 per cent, according to the latest Business Barometer from Lloyds.

When taken alongside their optimism in the economy, which dropped eight points to 34 per cent, this gives a headline confidence reading of 39 per cent (vs. 44 per cent in July).

A net balance of 48 per cent of businesses in the region also expect to increase staff levels over the next year, up nine points on last month.

Looking ahead to the next six months, businesses in the South West identified their top target areas for growth as investing in their team, for example through training (46 per cent), evolving their offering, for example through new products or services (41 per cent) and introducing new technology, such as AI or automation (39 per cent).

Nationally, confidence rose two points to 54 per cent.

The Business Barometer, which surveys 1,200 businesses monthly and which has been running since 2002, provides early signals about UK economic trends both regionally and nationwide.

Amanda Dorel, regional director for the South West at Lloyds, said: “South West businesses continue to demonstrate resilience and have ambitious plans for growth.”

Latest: South West business confidence dipped slightly in September