• Swindon & Wiltshire Economy
• Wednesday November 11 2026

South West businesses extend growth run as sales and confidence rise

South West businesses have recorded a fourth consecutive month of growth, with stronger sales and improving confidence offering a welcome boost as firms head towards the end of the year.

The latest NatWest South West Growth Tracker shows the region’s headline Business Activity Index held at 51.5 in October, signalling continued expansion in private-sector output. Although the pace of growth was modest, it remained above the average recorded across 2026 so far.

Businesses linked the rise in activity to new work, expansion plans and stronger demand. New business increased for the fourth month in a row, with sales growth accelerating from September and reaching one of its strongest rates in the past two years.

Firms reported improved customer budgets, successful marketing activity and a rise in enquiries. The improvement in demand was reflected in growing confidence about the year ahead, which reached its second-highest level in six months.

Companies pointed to new products and services, growth in areas including artificial intelligence and defence, expectations of a stronger tourism market and an improving national economy as reasons for optimism.

Faye Long, regional managing director for South West and Wales at NatWest, said the figures showed encouraging momentum despite ongoing cost pressures.

She said: “South West businesses have now grown for four months in a row, sales are strengthening and confidence in the year ahead has improved.

“It’s particularly positive to see businesses pointing to new products and opportunities in areas such as AI, defence and tourism as reasons for optimism.”

Long said continued growth in new business should give firms greater confidence to invest as the year draws to a close, although she warned that higher costs were still making some businesses cautious about hiring.

The South West continued to grow in October, although the improvement in business activity and new orders was stronger across the UK as a whole.

Employment in the region was broadly unchanged, while UK employment returned to growth after around two years of decline.

Confidence among South West businesses improved but remained below the UK average.

Cost pressures were more pronounced, with business costs rising at their fastest rate in five months. Only three UK regions and nations recorded a steeper increase. Businesses continued to raise prices in response, although at a slightly slower rate than the national average.

The Growth Tracker measures monthly changes in business activity, demand, employment, backlogs, prices and the year-ahead outlook, with a reading above 50 indicating growth.

Despite the pressure on margins, NatWest said the latest data suggests South West firms are entering the final months of 2026 with growing sales, improving sentiment and a stronger pipeline of new work.

Image by Mikey Harris at Unsplash