The South West has seen the biggest confidence rise of any region last month, climbing 22 points to 44 per cent in June, according to the latest Business Barometer from Lloyds.
Companies in the South West reported higher confidence in their own trading outlook month-on-month, up 18 points at 55 per cent.
When taken alongside their optimism in the economy, up 25 points to 32 per cent, this gives a headline confidence reading of 44 per cent – versus 22 per cent in May 2026.
South West firms reported strong customer demand (78 per cent) as the key driver of confidence in their own trading outlook.
A net balance of 31 per cent of businesses in the region also expect to increase staff levels over the next year, up three points on last month.
Business confidence in the South West now sits above the 12-month average of 35 per cent, with its highest figure of 52 per cent in June last year.
Looking ahead to the next six months, South West businesses identified their top target areas for growth as investing in their team, for example through training (43 per cent), evolving their offering, for example by introducing new products or services (43 per cent) and introducing new technology such as AI or automation (43 per cent).
The Business Barometer, which surveys 1,200 businesses monthly and which has been running since 2002, provides early signals about UK economic trends both regionally and nationwide.
Amanda Dorel, regional director for the South West at Lloyds, said: “It’s great to see confidence among South West businesses rise so strongly this month, with firms feeling more positive about their own trading outlook and the wider economy.
“And that optimism is translating into action, with businesses intending to invest in their teams, embrace new technology and evolve their offerings to support growth.
“With more firms planning to hire over the next year, there’s real momentum building across the region. We’ll continue to support South West businesses as they invest for the future.”
Photo by Jonny Gios on Unsplash
