• Swindon & Wiltshire Economy
• Monday October 28 2024
• Author Name: Peter Davison

South West business confidence continues its rollercoaster ride

Business confidence in the South West continued its rollercoaster ride in October, according to the latest Business Barometer from Lloyds.

Positive sentiment in the region fell seven points to 35 per cent, according to the poll, after climbing five points in September.

Nationally, confidence was down three points to 44 per cent.

Companies in the South West reported lower confidence in their own business prospects month-on-month, down 12 points at 43 per cent.

When taken alongside their optimism in the economy, down two points to 27 per cent, this gives a headline confidence reading of 35 per cent against 42 per cent in September.

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 (42 per cent), evolving their offering, for example by introducing new products or services (35 per cent) and introducing new technology (26 per cent).

A net balance of 42 per cent of businesses in the region also expect to increase staff levels over the next year, up six points on last month.

Amanda Dorel, regional director for the South West at Lloyds, said: “While confidence has dipped marginally this month, businesses have their eyes set on growth.

“Alongside technology and product developments, it’s encouraging to see businesses are focusing on people investments, with hiring intentions above the national average and skills development topping priority lists.

“This is something that won’t just benefit individual firms, but the wider regional economy.”

Hann-Ju Ho, senior economist at Lloyds Commercial Banking, said: “Although overall business confidence dipped in October, it follows a sustained period of significant optimism, and business sentiment remains above historical levels.

“Encouragingly, many businesses remain confident in their own trading prospects, and the increase in hiring intentions suggests more employers will want to grow their workforce.

“Businesses’ broader economic outlook continues to reflect this rounded picture, and as they move into the final part of the year, they will look to manage these considerations effectively.”

The Business Barometer, which surveys 1,200 businesses monthly, provides early signals about UK economic trends both regionally and nationwide. Businesses – including 95 in the South West – were polled between October 1 and 15.

Latest: South West firms more confident about own prospects, less confident about economy – Lloyds