South West business confidence falls
By Sarah Wood | 28th October 2024
Business confidence in the South West fell seven points during October to just 35%, according to the latest Business Barometer from Lloyds.
The Business Barometer, which surveys 1,200 businesses monthly, provides early signals about UK economic trends both regionally and nationwide.
Companies in the region reported lower confidence in their own business prospects month-on-month, down 12 points at 43%. Taken alongside their optimism in the economy, down two points to 27%, this gives a headline confidence reading of 35% (compared to 42% in September).
Looking ahead to the next six months, businesses in the South West identified their top target areas for growth as investing in their team, for example through training (42%), evolving their offering, for example by introducing new products or services (35%), and introducing new technology (26%).
A net balance of 42% of businesses in the region also expect to increase staff levels over the next year, up six points on last month.
Nationally, UK business confidence dipped slightly in October to 44% - down three points from September's 47%.
This was driven by marginal falls in firms' confidence about their own trading prospects (53% compared to 56% in September) and the economy (35% compared to 38% in September).
The North East of England was the most confident UK nation or region in October (63%), followed by London (56%) and the North West (53%).
Firms' trading prospects pulled back for the third consecutive month in manufacturing to 46%, the lowest level since March. There were also moderate declines of three points in both retail and services to 51% and 57% respectively.
Expectations in construction bucked the trend - rising to 50%.
Amanda Dorel, regional director for the South West at Lloyds, said: "While confidence has dipped marginally this month, businesses have their eyes set on growth.
"Alongside technology and product developments, it's encouraging to see businesses are focusing on people investments, with hiring intentions above the national average and skills development topping priority lists. This is something that won't just benefit individual firms, but the wider regional economy."
Hann-Ju Ho, senior economist, Lloyds Commercial Banking, said: "Although overall business confidence dipped in October, it follows a sustained period of significant optimism, and business sentiment remains above historical levels. Encouragingly, many businesses remain confident in their own trading prospects, and the increase in hiring intentions suggests more employers will want to grow their workforce.
"Businesses' broader economic outlook continues to reflect this rounded picture, and as they move into the final part of the year, they will look to manage these considerations effectively."
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