Business confidence has fallen again in the South West and is now the lowest in the 海角视频 as the coronavirus pandemic continues to hit demand for goods and services, a new report says.
The Business Barometer from Lloyds Bank Commercial Banking shows the overall confidence of firms in the South West fell nine points in the past month to -34%, and is now the lowest in the entire country.
Firms鈥 confidence in their own business prospects was -44%, compared with -26% in August, and more than a quarter (26%) of South West businesses said they couldn鈥檛 operate fully within current social distancing rules.
When asked about the impact Covid-19 was having on their business, the majority of firms continued to see demand negatively affected during September with 60% experiencing a fall in demand for their products and services, down three points on the month before.
Meanwhile, just 7% experienced an increase in demand, down two points on August.
However, more encouragingly, the South West had the highest share of firms not using the Job Retention Scheme (52%).
When asked about the impact of social distancing measures, 63% of South West businesses said they could, in theory, operate at full capacity while remaining Covid-secure, although 26% said they couldn鈥檛 operate fully within the rules.
Of the 44% of businesses reporting disruption to their supply chain during September, almost a third (30%) expect the situation to improve within six months, while 8% expect it will take more than 12 months to return to normal levels.
David Beaumont, , said: 鈥淪outh West firms see challenges ahead as the peak holiday season winds down for the tourism sector, and the impact of the end of schemes like Eat Out to Help Out becomes clear.
鈥淒espite big hurdles looming, this month鈥檚 figures do show encouraging signs that the region may be more sheltered than others from the expected rise in unemployment when the furlough scheme ends.
鈥淎s South West businesses adapt to the latest trading conditions, we will stand by their side to help them navigate the ongoing disruption and uncertainty.鈥
At national level, overall 海角视频 confidence increased three points month-on-month to -11%. The East Midlands, Wales and London each had the highest confidence at -4%.
How to contact William Telford and Business Live
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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Of the four major industry sectors, the services sector recorded the highest increase of eight points to -10%, driven in particular by the hospitality and finance and business services.
Manufacturing was the only major sector to experience a decline in confidence, falling by eleven points to -18%.
Hann-Ju Ho, senior economist, Lloyds Bank Commercial Banking, said: 鈥淚t is encouraging to see a fourth consecutive lift in confidence, reflecting improvements in trading prospects and economic optimism.
鈥淗owever, with new lockdown restrictions being announced, the 海角视频鈥檚 path to economic recovery is uncertain and it remains to be seen how the new measures will impact on business confidence.鈥
The Business Barometer questions 1,200 businesses monthly and provides early signals about 海角视频 economic trends both regionally and nationwide.
