• Swindon & Wiltshire Economy
• Friday July 31 2026

South West business confidence falls in July

Business confidence in the South West fell 14 points during July to 30 per cent, according to the latest Business Barometer from Lloyds – a sharp drop that reflects significant headwinds facing businesses in the region.

Companies in the South West reported lower confidence across the board. While firms’ confidence in their own trading outlook fell 16 points to 39 per cent, their optimism in the economy dipped 12 points to 20 per cent, giving a headline confidence reading of 30 per cent (vs. 44v in June 2026) and suggesting businesses are grappling with both immediate operational challenges and broader economic uncertainty.

A net balance of 16 per cent of businesses in the region expect to increase staff levels over the next year, down 15 points on last month.

Business confidence in the South West now sits below the 12-month average of 34 per cent, with its highest figure of 48 per cent in March 2026.

Looking ahead to the next six months, South West businesses identified their top target areas for growth as investing in their team, for example through training (43 per cent), evolving their offering, for example by introducing new products or services (43 per cent), and introducing new technology, such as AI or automation (43 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: “This month’s figures show that South West businesses are facing a challenging outlook, with confidence falling across both trading outlook and the wider economy.

“However, it’s positive to see many continuing to focus on the foundations of future growth, from investing in their teams to evolving their products and services and adopting new technology.

“We’ll continue to stand alongside businesses across the region, helping them manage short-term pressures while staying focused on the opportunities ahead.”