Business confidence in the South West has returned to positive territory but is lagging behind the UK average with companies experiencing some challenges more acutely than in other regions, a new survey has found.
The Institute of Chartered Accountants in England and Wales (ICAEW), Business Confidence Monitor for the South West found sentiment at 2.1, below the UK average of 2.5. Domestic sales growth was the slowest in the UK, rising at 3.7% a year, although ICAEW said it is expected to increase in line with the national average of 4.9% over the next year.
The South West was one of only two areas of the UK where labour market challenges worsened in the last quarter with almost a third of businesses reporting the availability of non-management skills as a problem. It was also the only region where staff turnover worsened, this was cited by almost four in 10 businesses.
