Business confidence on the rise in the South West

Business confidence in the South West rose during June according to the latest Business Barometer from Lloyds Bank Commercial Banking.

While companies in the South West reported lower confidence in their own business prospects month-on-month, down 11 points at 40%, their optimism in the economy climbed 17 points to 47%.

When taken together, this gives a headline confidence reading of 43%.

A net balance of 32% of businesses in the region also expect to increase staff levels over the next year, up one point on last month.

Looking ahead to the next six months, South West businesses identified their top target areas for growth as evolving their offering, for example by introducing new products or services (40%), investing in their teams, for example through training (37%), and entering new markets (35%).

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

Overall UK business confidence fell nine points in June to a net balance of 41%. However, this was consistent with levels seen during Q1 2024, before the sharp rise in May, and remained above the long-term average (28%).

Results across the sectors were mixed in June as three of the four sectors saw a decline in trading prospects. Construction fell 16 points to 42% and there were other notable decreases in retail (down 14 points to 35%) and services (down 11 points to 46%). Manufacturing however, bucked this trend, increasing by two points to 51%.

Amanda Dorel, regional director for the South West at Lloyds Bank Commercial Banking, said: “South West firms are pressing ahead with their growth plans – be they creating new products or services, or entering new markets.

“As they do so, we’ll continue to be by our side with our funding and support. This includes specialist tools that can help firms tightly manage working capital – something that will give businesses the financial flexibility they need to quickly capitalise on new opportunities as they emerge.”