Confidence among Swindon and Wiltshire firms has fallen with fewer expecting to increase sales or take on more staff compared to a year ago, according to the latest survey by Business West.
The organisation, which runs the Initiative in Swindon & Wiltshire, described the indicators as a “cause for concern” after the local economy experienced a strong recovery last year.
As a result, growth remained fragile could be hit further by uncertainty linked to the EU referendum and a possible Greek exit from the euro. 
The quarterly survey of almost 200 firms showed some positives, with domestic sales over the past three months increasing for 53% of firms – a rise of one percentage point on the previous survey – while 44% of exporters racked up higher sales – nine percentage points higher than last time.
More firms took on staff during the period – 25% against 17% three months ago – and the same number expect to recruit over the next quarter. However, this was a fall on the 44% which a year ago said they intended to employ more people.
Growth in domestic and overseas sales will also slow this year, according to the survey.
Swindon and Wiltshire Initiative director Ian Larrard, pictured, said: “The latest quarterly figures for Swindon and Wiltshire signal an upturn, with increases in sales and recruitment this quarter. But a drop in business confidence and double digit decreases in several major indicators on the year are a cause for concern.
“The results are encouraging in the short term, but the annual comparison suggests that this quarter’s growth is on light footing.
“Crucial indicators saw large percentage falls on the year, such as domestic sales, international sales and recruitment. Add to that an eleven point drop in business confidence over the last three months and the picture isn’t as positive. With higher than average private sector employment, our region proves that there are still hurdles in the way of long term prosperity.”
While the General Election result provided clarity, Mr Larrard said, the political talk since had been less than clear.
“Constant talk of an EU referendum, coupled with fears of a Greek exit from the euro has brought uncertainty.
“These results highlight that growth remains fragile and there needs to be renewed focus for pro-growth policies which address the day-to-day barriers that are holding firms back,” he said.
