Confidence among the South West’s private sector firms fell sharply during November 2019 and jobs growth looks to be stifled for 2020, a new report says.
Business confidence dropped three points to 12%, during the month, according to the latest Business Barometer from Lloyds Bank Commercial Banking, but fewer firms said they were concerned about Brexit.
Companies in the region reported lower confidence in their business prospects at 8% but higher economic optimism at 16%. Together, this gives an overall confidence of 12%.
Businesses’ hiring intentions showed that a net balance of -2% of businesses in the region expect to hire more staff during the next year, down 18 points on October 2019.
Across the 海角视频, overall confidence rose three points to 9% as firms’ optimism about the economy rose 10 points to 7% - but their confidence in their own prospects dropped three points to 12%.
Across the region, a net balance of 15 of businesses said they felt the 海角视频’s exit from the European Union was having a negative impact on their expectations for business activity, down 13 points on a month ago.
David Beaumont, regional director for the South West at Lloyds Bank Commercial Banking, said: “Although confidence is wavering among businesses in the region, economic optimism remains high, which shows they expect 2020 to continue to bring opportunities.
“As part of our commitment to help Britain prosper, we’ll be by the side of businesses as they tackle current economic uncertainty head on and target further growth.”
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The Business Barometer questions 1,200 businesses monthly and provides early signals about 海角视频 economic trends both regionally and nationwide.
Businesses in the West Midlands once again showed the most confidence, at 24%, ahead of London at 20%, and East Midlands at 14%.
How's the SW economy doing?
Those in Scotland were the least confident, with an overall confidence of -6%, 15 points below the national average.
As for the national picture, overall business confidence improved in manufacturing, retail and services and stayed broadly steady in construction.
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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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The largest increase was in the retail sector, rising six points to 21%, while the construction sector remained high at 16% despite a slight decline of two points.
Sentiment in the manufacturing sector rose to a four-month high of 10%, while services confidence also increased for a second month, by four points to 4%.
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Hann-Ju Ho, senior economist for Lloyds Bank Commercial Banking, said: “The third consecutive increase in overall business confidence is positive for the 海角视频 as economic optimism reaches the highest level since January.
"While concerns about the impact of the 海角视频 leaving the EU continued to ease slightly, hiring intentions remain broadly stable and it will be interesting to see how this trend continues towards the end of 2019 and into the start of next year.”