• Swindon & Wiltshire Economy
• Tuesday June 2 2026

South West business confidence dipped in May

Business confidence in the South West fell two points during May to 22 per cent, according to the latest Business Barometer from Lloyds.

Companies in the region reported higher confidence in their own trading outlook month-on-month, up four points at 37 per cent.

But when taken alongside their optimism in the economy, down nine points to seven per cent, this gave a headline confidence reading of 22 per cent – down from 24 per cent in April.

Despite this, South West firms cited stronger customer demand (51 per cent) as driving increased confidence in their own trading prospects.

Since May 2025, the South West has had an average overall business confidence of 36 per cent with its largest figure of 52 per cent in June last year and its lowest of 18 per cent in February.

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 (47 per cent), entering new markets (39 per cent), and investing in their team, for example through training (31 per cent).

Amanda Dorel, regional director for the South West at Lloyds, said: “Despite a fall in confidence this month, it’s encouraging that firms in the South West are still feeling resilient about their own trading outlook.

“Alongside this, businesses have clear priorities in mind to support growth, whether that’s evolving their offering or entering new markets.

“We’ll continue to be there with tailored support for businesses across the region as they look to navigate the important summer months.”

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