Businesses across the South West continue to feel affected by economic uncertainty and market volatility but are more confident about their own prospects for the next year than that of the wider economy.
According to new research by Clydesdale Bank, 36.7% of the South West businesses questioned expect to increase turnover by more than 5% in the year ahead, despite only just over a quarter (27.8%) being confident the economy will return to healthy growth.
Despite their concerns about the economy, 37.7% are planning to invest at least 5% of their turnover back into their business in the next 12 months, with the leading investment priorities being new staff, new equipment, training existing employees and developing new products and services.
The most pressing concerns for South West businesses are fluctuating fuel prices and rising corporation tax with nearly a third (32.7%) and nearly a fifth (18.8%) citing these issues as the key factors in their businesses’ future growth respectively.
Brian Colquhoun, regional director West for Clydesdale Bank, said: “Businesses are clearly more confident about their own prospects and in control of their own destiny than they are for the wider economy, despite the impact of rising fuel and materials prices.”
IT and telecoms businesses appear to be the most confident with more than half (51%) expecting increased turnover of at least 5% in the next 12 months. Healthcare and education businesses are the least confident with only 32% and 23% respectively expecting similar growth.
