• Swindon & Wiltshire Economy
• Thursday February 29 2024
• Author Name: Peter Davison

South West business leaders still lack confidence in UK economy – Lloyds Bank

Business confidence in the South West has taken a tumble again, according to the latest Business Barometer from Lloyds Bank Commercial Banking.

According to the survey, business confidence fell in February fell seven points to 31 per cent on the preceding month.

Firms’ optimism in their own trading prospects dropped three points to 37 per cent, while optimism in the economy fell 12 points to 24 per cent.

Nationally, business confidence stood at 42 per cent.

In more positive news, a net balance of 36 per cent of businesses in the region expected to increase staff levels over the next year, down seven points month-on-month.

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

Amanda Dorel, regional director for the South West at Lloyds Bank Commercial Banking, said: “This dip in confidence comes amid improving, but still very challenging, economic conditions.

“While inflation is relatively slower than it was last year, it’s still weighing on household spending. This is something that South West businesses will be particularly sensitive to given the region’s strong base in hospitality and tourism. Firms will be hoping for further improvement in these areas as the warmer, busier, months draw nearer.

“However, it’s hugely encouraging to see that the region’s firms are – as always – pressing ahead in search of new growth opportunities. As they explore new markets and make investments in their operations, we’ll continue to be by their side to support their ambitions.”

Latest: Business confidence in the South West takes another hit – Lloyds