Business owners in the West Country are focused on growth despite a fall in confidence around trading prospects, a new report has found.
Business confidence in the South West fell eight points during July to 44%, according to the latest Business Barometer from Lloyds. Companies across the region reported lower confidence in their own prospects month-on-month, down 16 points at 47%.
Looking ahead to the next six months, South West firms identified top target areas for growth as investing in their team (44%), evolving their offering such as introducing new products or services (35%) and entering new markets (34%).
The Business Barometer, which surveys 1,200 businesses monthly, provides early signals about Ƶ economic trends both regionally and nationwide.
Amanda Dorel, regional director for the South West at Lloyds, said: “Despite a dip in confidence this month, it’s encouraging to see that regional businesses remain focused on growth, investing in measures that will help both build resilience and unlock new opportunities.
“We’ll continue to be ready to support their plans with our on-the-ground, tailored support.”
Nationally, Ƶ business confidence increased one point in July to 52% – its highest level since 2015 and the third consecutive monthly increase.
Wales was the most confident Ƶ nation or region for the second month in a row (76%), followed by the North East (73%).
July saw the service sector’s confidence increase by 11 points to 61%, one of the main drivers behind this month’s overall increase in business confidence.
The gain was partially offset by declines in other areas, Lloyds said, with retail firms down eight points, manufacturers down four points and the construction sector down six points.
Hann-Ju Ho, senior economist at Lloyds Commercial Banking, added: “This continued upward trend reflects a growing sense of cautious optimism across the Ƶ economy, underpinned by both improved trading prospects and broader economic sentiment.
"Despite ongoing cost pressures, firms are positioning for growth, particularly in services where hiring and investment plans are accelerating.
“Overall business confidence remains buoyant, with firms well placed to take advantage of opportunities such as new markets, adopting new technology and workforce expansion amid evolving market conditions.”
