• Swindon & Wiltshire Economy
• Thursday April 10 2025

South West led UK’s economic growth in March – report

The South West was one of two regions to lead economic growth in the UK last month – an honour shared with London.

That’s one of the findings of the latest Regional Growth Tracker from Natwest.

Following dips in most regions in January and February, things picked up in March with improvements seen in the South East and Yorkshire and Humber, says the report.

The strongest increase in underlying demand in March was seen in the South West, where inflows of new work rose for the first time in four months.

The region was only one of two in the UK, along with Scotland, where job losses started to ease. The fastest fall in staffing levels was recorded in the East of England, though the pace of decline there was noticeably slower than the month before.

And when Natwest looked at inflationary drivers, it found firms in the South West were the least aggressive with output price rises. Northern Ireland recorded the steepest rise in average prices charged for goods and service.

The NatWest Regional Growth Tracker Business Activity Index is the first fact-based indicator of regional economic health published each month. A reading above 50 signals growth, and the further above the 50 level the faster the expansion signalled.

Of the 12 UK regions, only five posted above 50. The average across the UK for March was 51.5.

Commenting on the Tracker’s findings, Sebastian Burnside, chief economist at Natwest, said: “According to March’s report, London continued to lead in March, with the South West also making a sizeable contribution to UK economic growth.

“We saw growth broaden out slightly, as both the South East and Yorkshire & Humber enjoyed renewed upturns in business activity.

“Market conditions remain challenging and recent tariff announcements suggest we could see continued challenges in the coming months.

“Firms up and down the country are looking to control costs, which is feeding through to staffing decisions.

“Price pressures remain high across the board, though they did at least subside slightly in most areas in March, on the eve of the changes to national insurance contributions and national minimum and living wages.”