But firms remain focused on investing and growth, according to the research by Lloyds
View of Bristol(Image: Getty Images)
Business confidence in the South West fell during January but firms remain focused on growth, according to a survey of regional companies. The Lloyds Business Barometer found business leaders had marginally lower confidence in their company’s prospects month-on-month, down two points at 39 per cent.
When taken alongside optimism in the economy, it gave a headline reading of 28 per cent – down one per cent from December.
Looking ahead to the next six months, South West businesses identified their top target areas for growth as evolving their offering, for example by introducing new products or services (43 per cent), investing in their team, for instance by investing in training (38 per cent) and introducing new technology (32 per cent).
A net balance of 23 per cent of businesses in the region also expect to increase staff levels over the next year, up 10 points on last month.
Amanda Dorel, regional director for the South West at Lloyds, said: “While confidence has softened slightly this month, it’s encouraging to see South West businesses maintaining their focus on growth.
“This month’s data shows that firms continue to invest in the fundamentals that drive long-term success, such as developing their teams, evolving what they offer and adopting new technologies. We’ll continue to provide our support to help South West firms and make the investments they need to move forward.”
The Business Barometer surveys 1,200 businesses monthly and has been running since 2002.
Nationally, UK business confidence fell three points in January to 44 per cent. While firms’ confidence in their own trading prospects rose seven points to 59 per cent, their optimism in the wider economy fell 14 points to 28 per cent.
London was the most confident UK nation or region in January (68 per cent), followed by Northern Ireland (66 per cent) and the West Midlands (65 per cent).
Hann-Ju Ho, senior economist, Lloyds Commercial Banking, said: “Firms are reporting confidence in their trading prospects at the start of the year, despite a slight softening of wider economic optimism. This points to businesses’ ability to manage external risks and a focus on growth opportunities.“The first rise in confidence in the services sector in seven months is encouraging given the sector’s central role in supporting UK economic activity.”