South West confidence falls in October
Business confidence in the South West fell seven points during October to 35%, according to the latest Business Barometer from Lloyds.
Companies in the South West reported lower confidence in their own business prospects month-on-month, down 12 points at 43%. When taken alongside their optimism in the economy, down two points to 27%, this gives a headline confidence reading of 35% (vs. 42% in September).
Looking ahead to the next six months, businesses in the South West identified their top target areas for growth as investing in their team, for example through training (42%), evolving their offering, for example by introducing new products or services (35%) and introducing new technology (26%).
A net balance of 42% of businesses in the region also expect to increase staff levels over the next year, up six points on last month.
The Business Barometer, which surveys 1,200 businesses monthly, provides early signals about UK economic trends both regionally and nationwide.
Overall, UK business confidence dipped slightly in October to 44% – down three points from September’s 47%.
This was driven by marginal falls in firms’ confidence about their own trading prospects (53% vs. 56% in September) and the economy (35% vs. 38% in September).
The North East of England was the most confident UK nation or region in October (63%), followed by London (56%) and the North West (53%).
Firms’ trading prospects pulled back for the third consecutive month in manufacturing to 46%, the lowest level since March. There were also moderate declines of 3 points in both retail and services to 51% and 57% respectively.
Expectations in construction bucked the trend, rising to 50%.
Amanda Dorel, regional director for the South West at Lloyds, said: “While confidence has dipped marginally this month, businesses have their eyes set on growth.
“Alongside technology and product developments, it’s encouraging to see businesses are focusing on people investments, with hiring intentions above the national average and skills development topping priority lists. This is something that won’t just benefit individual firms, but the wider regional economy.”
