Business confidence in the South West slipped to its lowest level for nearly two years in March due to rising costs and labour shortages, according to new research.
The latest regional PMI data from NatWest showed price pressures on firms intensified last month, with a quicker rise in input costs feeding through to an unprecedented increase in output charges.
Many firms surveyed anticipated activity would continue to recover due to relaxation of Covid-19 restrictions, but there were concerns over rising costs, supply chain disruption and labour shortages.
