• Swindon & Wiltshire Economy
• Tuesday September 9 2025

South West business activity expands at quickest rate for a year

A fresh increase in new business fuelled a stronger rise in business activity across the South West in August, according to the latest NatWest Growth Tracker.

The headline South West Business Activity Index picked up from 51.1 in July to 54.5 in August, to signal an accelerated and solid rise in output across the region. Activity has now risen in each of the past eight months, with the latest expansion the quickest since August 2024.

Businesses in the region reported that improved inflows of new work and new client enquiries had boosted activity during the latest survey period, with some firms noting the success of recent marketing campaigns.

Total new orders received by South West private sector firms rose for the second time in the past three months in August, and the rate of expansion was the quickest recorded since last November.

However, private sector employment across the South West decreased for the tenth successive month in August.

The rate of job shedding softened slightly from July, but remained marked overall and quicker than that seen on average across the UK.

Latest survey data signalled stronger cost pressures across the South West private sector in August.

The seasonally adjusted Input Prices Index moved higher for the first time in four months and was consistent with a sharp increase in expenses.

Firms in the region generally responded to rising input costs by raising their own selling prices in August, though the rate of inflation was the second-slowest seen over the past 11 months.

Faye Long, chair of the NatWest South West Regional Board, said: “The latest tracker data revealed a healthy rebound in customer demand across the South West during August, which in turn supported the quickest rise in output for a year.

“However, whilst the region has enjoyed a strong summer performance, confidence around the year ahead weakened in August amid ongoing economic uncertainty and a sharper increase in expenses.

“Higher staff costs were mentioned as a key driver of inflation, with firms noting the impact of increased National Insurance contributions, and subsequently employment remained under pressure.

“Notably, staff numbers fell solidly, with companies often noting restructuring efforts and hesitancy to fill any current vacancies due to cost-cutting measures.

“Companies also looked to partially absorb any increases in running costs to help support new business, with selling price inflation easing in August amid competitive market pressures.”