Confidence of region’s firms lowest in UK

Business confidence in the South West is the lowest of any region or nation in the UK, a new survey has revealed.

The latest Business Barometer from Lloyds Bank Commercial Banking shows confidence among firms in the region fell three points during July to 11 per cent. It marks the second consecutive month that the South West has registered the lowest measure on the survey.

Companies in the region reported lower confidence in their own business prospects monthon-month, down four points at 23 per cent. When taken alongside their optimism in the economy, down one point to -1 per cent, this gives a headline confidence reading of 11 per cent.

Amanda Dorel, regional director for the South West at Lloyds Bank Commercial Banking, said: “The variety of economic challenges South West firms are currently facing is unlikely to ease in the immediate future.

“However, our tourism and hospitality

sectors in particular will be hoping for prosperous weeks ahead as the summer holidays bring significantly increased footfall to the region’s sun-drenched hotspots.”

Despite the drop in confidence, South West businesses reported plans to target new growth opportunities in the next six months, including evolving their offering (34 per cent), investing in their teams (31 per cent) and diversifying into new markets (25 per cent).

Ms Dorel said: “As businesses in all industries battle with the impact of inflation, it’s more important than ever to maintain effective working capital management to best equip themselves for what lies ahead so they can make the most of any opportunities for growth.”

However a net balance of 8 per cent expect to reduce staff levels over the next year, down 13 points on last month.

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

Overall UK business confidence dropped three points during July to 25 per cent.