Business confidence continues to fall in South West
Business confidence in the South West fell slightly during June – according to the latest Business Barometer from Lloyds Bank Commercial Banking.
Companies in the South West reported lower confidence in their own business prospects month-on-month.
South West businesses identified their top target areas for growth in the next six months as investing in teams (31 per cent), diversifying into new markets and evolving their product or service offerings (both 29 per cent).
The Business Barometer, which surveys 1,200 businesses monthly, provides early signals about UK economic trends both regionally and nationwide.
A net balance of 13 per cent of businesses in the region expect to increase staff levels over the next year, down 22 points on last month.
Overall, UK business confidence increased by nine points to 37 per cent in June, with all regions reporting a positive confidence reading. Eight out of 10 regions reported a higher confidence reading than in May.
London and the South West were the only regions to report a decline in confidence. In London confidence fell by 10 points to 33 per cent, while in the South West it fell by one point to 29 per cent.
[AuthorRecommendedPosts]Business confidence for firms in the service sector rose to 37 per cent, the highest seen since February 2022. With the recent spell of good weather and a reduction in food and energy prices, businesses in leisure and hospitality may be able reap the rewards in the months to come.
Manufacturing firms’ confidence also increased to its highest level since early 2022, rising to 50 per cent to outperform other sectors.
Amanda Dorel, regional director for the South West at Lloyds Bank Commercial Banking, said: “Confidence levels among the regions businesses remains strong and it’s really encouraging to see firms optimistic in the UK’s wider economic outlook. Of course, there are still headwinds for firms, particularly with sticky inflation, but there are reasons to be optimistic with some costs starting to fall and a busy summer trading period ahead.
“Hospitality and leisure firms in particular will be hoping for a long summer season of spending. Those who move quickly to attract new employees in an increasingly tight labour market will be poised to take full advantage of increasing levels of trading.”
