West businesses’ confidence at three-year high

Businesses across the South West are more upbeat than at any time for more than three years despite ongoing supply chain and labour shortages, a new report reveals.

The Lloyds Bank Business Barometer survey shows business confidence in the South West climbed to its highest level since 2018, rising 10 points during September to 47 per cent.

The study, from Lloyds Bank Commercial Banking, revealed that companies in the region reported higher confidence in their own business prospects month-onmonth, up 16 points at 41 per cent.

And when taken alongside their optimism in the economy, confidence was up seven points to 55 per cent, giving a headline confidence reading of 47 per cent.

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

But this month’s survey was conducted before fuel disruption and ongoing supply chain issues tightened their grip. However, a net balance of 31 per cent of businesses in the region expect to increase staff levels during the next year, up 15 points from August.

David Beaumont, regional director for the South West at Lloyds Bank Commercial Banking, said: “Business confidence in the South West has recently gone from strength to strength and it’s encouraging to see a return to levels not seen since the start of the pandemic.

“Despite the ongoing supply chain and labour shortages, our region’s tourism and hospitality firms remain in high spirits after a healthy period of summer trading that many hope will continue as we head into the autumn months.”