Skip navigation

Gloucestershire Business News

South West business confidence rises in September

Business confidence in the South West rose five points during September to 42%, according to the latest Business Barometer from Lloyds Bank Commercial Banking.

Companies in the South West reported higher confidence in their own business prospects month-on-month, up 19 points at 55%. This was somewhat offset by a decrease in optimism in the economy, which dropped nine points to 29%, but still gives a headline confidence reading of 42% (vs. 37% in August).

A net balance of 36% of businesses in the region also expect to increase staff levels over the next year, up 24 points on last month.

Looking ahead to the next six months, South West businesses identified their top target areas for growth as investing in their team, for example by hiring new employees (51%), evolving their offering, for example by introducing new products or services (45%) and entering new markets (36%).

The Business Barometer, which surveys 1,200 businesses monthly, provides early signals about UK economic trends both regionally and nationwide.

National picture

Overall UK business confidence in September dipped slightly, to 47% down from August's 50%.

Though there was a marginal increase in their own trading prospects (up two points month-on-month to 54%), firms' confidence in the overall economy dropped nine points to 38%.

The joint-most confident regions in the UK were the West Midlands and London, both reporting overall confidence of 59%. Only Northern Ireland, Wales, London, the South West and North West reported an increase in overall confidence.

Sector Insights

Projections for output were mixed across the sectors, with some showing significant changes from previous results. In construction, the sharp increase last month was largely counteracted by a drop in expectations in September, falling by 12 points to 46%.

Similarly, in manufacturing, trading prospects fell for a second month to 53%, although this figure is still stronger than the year-on-year figure. However, the falls in manufacturing and construction sectors were more than offset by a small rise in retail and a bigger rise in the dominant service sector.

Amanda Dorel, regional director for the South West at Lloyds Bank Commercial Banking, said: "Firms' confidence in their own prospects has strengthened this September, a testament particularly to hospitality and leisure businesses who successfully navigated their way through a challenging period of summer trading.

"As businesses strive to capitalise on this positive outlook - be it by investing in workforce development or introducing new services - we'll be there providing on-the-ground support to assist them in achieving their goals."

Hann-Ju Ho, senior economist, Lloyds Bank Commercial Banking, said: "Although overall confidence fell this month, that fall was from a nine-year high and businesses remain positive about their own trading prospects. The joint-highest result this year could suggest that respondents still see a positive future for their own companies, which is also reflected in the largely unchanged employment figures.

"The more mixed picture for economic optimism points to some businesses maintaining a degree of caution. While we still expect economic expansion, it may occur at a slower rate than the first half of 2024."

Related Articles

BUDGET: Devolution uncertainty left Cheltenham chiefs struggling Image

BUDGET: Devolution uncertainty left Cheltenham chiefs struggling

The £19.05m proposals are due to be considered this week

Looming NI changes prompt plans to increase redundancies Image

Looming NI changes prompt plans to increase redundancies

Latest data highlights urgent need for Government to provide business support.

Homecoming for new council chief executive Image

Homecoming for new council chief executive

Jo Walker has been appointed as the new chief executive of Gloucestershire County Council.

Safran boss reflects on 'remarkable' year Image

Safran boss reflects on 'remarkable' year

Record levels reached for revenues, profits and free cash flow.

Copyright 2025 Moose Partnership Ltd. All rights reserved. Reproduction of any content is strictly forbidden without prior permission.