Business confidence plunged in South West during last month

Business confidence in the South West fell sharply in the last month according to a key survey.

According to the latest Business Barometer from Lloyds Bank Commercial Banking confidence fell 15 points during July to 28 per cent.

Companies in the South West reported lower confidence in their own business prospects month-on-month, down seven points at 33 per cent.

When taken alongside their optimism in the economy, down 24 points to 23 per cent, this gives a headline confidence reading of 28 per cent compared to 43 per cent in June.

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 (45 per cent), investing in their team, for example through training (34 per cent), and investing in sustainability (24 per cent).

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

Amanda Dorel, regional director for the South West, Lloyds Bank Commercial Banking, said: “While overall confidence dipped in July, it’s encouraging to see South West businesses are still investing to take advantage of growth opportunities, particularly when it comes to their teams and sustainability. These are both measures that can have positive, long-term, benefits that extend far beyond businesses themselves.

“As businesses put their growth plans into action, we’ll be by their side with our insight and funding. This includes discounted lending for green purposes to help make critical investments for more sustainable growth.”

Hann-Ju Ho, Senior Economist, Lloyds Bank Commercial Banking, said: “This month shows that businesses are feeling more confident, buoyed by their positive trading prospects and economic outlook. Retail-focused businesses were the main driving force behind the positive rise in trading prospects and these results tally with the improvement we have seen in consumer confidence.

“With the data suggesting that businesses may have taken a more cautious approach in June, next month will be one to watch to see if the renewed sense of optimism continues.”