Business confidence in the South West fell in March but firms are still setting out plans for future growth, a new report has revealed.
Companies in the region reported lower confidence in their own business prospects month-on-month, down 24 points at 30%, according to the latest Business Barometer from Lloyds.
When taken alongside optimism in the economy, down 15 points to 15%, the report gave a headline confidence reading of 23%, compared to 42% in February.
Looking ahead to the next six months, South West businesses identified top target areas for growth as evolving their offering, such as introducing new products or services (42%); introducing new technology, such as AI and automation (35%); and investing in staff (33%).
The Business Barometer, which surveys 1,200 businesses monthly, provides early signals about º£½ÇÊÓƵ economic trends both regionally and nationwide. This data was gathered ahead of the Spring Statement.
Amanda Dorel, regional director for the South West at Lloyds, said: “Despite this month’s fall in confidence, local firms are still setting out plans for future growth.
“We’ll continue to support their ambitions with our targeted, on-the-ground support – helping make those moves that are essential to their strategies, whether that’s investing in new products, technology or their team.â€
Nationally, º£½ÇÊÓƵ business confidence was 49% in March – the same as in February. While firms’ optimism in their own trading prospects held steady at 57%, confidence in the wider economy dropped one point to 40%.
Retail confidence rose seven points to 58%, a post-pandemic high, reflecting positive trading prospects.
In contrast, the manufacturing sector saw the largest decrease in business confidence over the month, declining 12 points to 39%, due to increased concerns about supply chain disruptions.
Hann-Ju Ho, senior economist, Lloyds Commercial Banking, added: "With confidence maintaining last month’s high, business leaders are optimistic, noting that investing in their development and workforce will position them well to seize future growth opportunities."
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