• Swindon & Wiltshire Economy
• Wednesday September 30 2026

South West businesses boosted by strong demand despite confidence fall

Business confidence in the South West fell 30 points during September to 25 per cent, according to the latest Business Barometer from Lloyds.

Companies in the South West also reported lower confidence in their own trading outlook month-on-month, down 20 points at 41 per cent. When taken alongside their optimism in the economy, down 40 points to nine per cent, this gives a headline confidence reading of 25 per cent against 55 per cent in August 2026.

Despite this, firms in the South West reported stronger customer and market demand (53 per cent) and industry-specific improvements (41 per cent) as the leading drivers for optimism in the economy.

For those expecting business activity to increase in the next year, 69 per cent cited stronger customer demand as a catalyst, while 42 per cent pointed towards increased investment in capacity or technology.

Business confidence in the South West now sits below the 12-month average of 34 per cent, with its highest figure this year of 55% in August.

Looking ahead to the next six months, South West businesses identified their top target areas for growth as investing in their team, for example by investing in training and development (36 per cent), entering new markets (31 per cent) and introducing new technology (31 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: “Although confidence has fallen this month, it’s encouraging to see South West businesses continuing to focus on the opportunities ahead.

“Stronger customer demand remains a key source of optimism for many firms, and businesses are clearly thinking about how they can position themselves for future growth.

“Plans to invest in skills, explore new markets and adopt new technology all point to a region that remains ambitious.

“For businesses looking to make those investments, maintaining a clear view of their priorities and having the right support in place will be important as they navigate the months ahead.”

Image by Gordon Plant at Pexels