Businesses upbeat about the future

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%.

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

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

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% 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.”

Overall UK business confidence rose 10 points in September to 46%, with all regions and nations reporting double-digit confidence levels.

The number of businesses planning on hiring new staff more than doubled from 18% to 37% as firms plan to increase headcount during the next 12 months. Overall confidence in trading prospects rose by nine points to 43% and firms’ optimism in the economy increased by the same amount to 48%.

Confidence increased across the four broad sectors, notably in manufacturing and services. Retail confidence and construction also improved.