Business confidence in the South West fell before the General Election -with Brexit again being blamed - though many firms expect to create jobs in 2020.
Confidence dipped five points during December 2019 to 7%, according to the latest Business Barometer from Lloyds Bank Commercial Banking.
Companies in the South West report higher confidence in their business prospects at 21%. However, when taken alongside falling expectations for the economy overall, this gives an overall confidence of 7%.
A net balance of 7% of businesses in the region expect to hire more staff during the next year, up nine points on the previous month.
Across the Ƶ, overall confidence edged up one point to 10% as firms’ confidence in their own prospects rose six points to 18%, although their optimism in the economy fell to 2%.
Across the region, a net balance of 18% of businesses said they felt the Ƶ’s exit from the European Union was having a negative impact on their expectations for business activity, up three points on a month ago.
The Business Barometer questions 1,200 businesses monthly and provides early signals about Ƶ economic trends both regionally and nationwide. This month’s survey was carried out before the result of last week’s General Election was known.
David Beaumont, regional director for the South West at Lloyds Bank Commercial Banking, said: “It’s positive to see that South West businesses’ confidence in their own prospects are high, and that their plans to create new jobs are rising as well.
“While overall confidence has taken a dip, we expect to see that improve as businesses benefit from greater clarity in the New Year.
“We’ll continue to be by the side of businesses in the South West as part of our commitment to help Britain prosper.”
Keep track of the Business Barometer...
Nationally, businesses in the West Midlands had the highest confidence for the third month running, at 23%, ahead of the East Midlands at 18%, and London at 16%.
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Business Live's South West Business Reporter is William Telford. William has more than a decade's experience reporting on the business scene in Plymouth and the South West. He is based in Plymouth but covers the entire region.
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Those in East of England were the least confident, with an overall confidence of -2%, 12 points below the national average.
In December, overall business confidence saw a marked improvement in the manufacturing sector, increasing 17 points to 27%.
Confidence in the retail sector increased by one point to 22%, while confidence in the service sector stayed broadly steady at 4%. The construction sector saw a slight decrease of four points to 16%.
Hann-Ju Ho, senior economist for Lloyds Bank Commercial Banking, said “As we come to the end of what has undoubtedly been a turbulent year, it is encouraging to see sustained increases in overall business confidence and the sharp improvement in manufacturing confidence.
“There is now clarity over the Ƶ’s departure from the EU, but the focus will turn to whether a new trade agreement can be negotiated during the transition period which currently runs until the end of next year.”
