Confidence levels for firms in Swindon and Wiltshire have fallen on the back of lower sales, fewer new jobs and worsening cashflow, according to the results of Business West’s latest survey.
The figures, released last week, were described as “tough reading” by Ian Larrard, director of the Swindon and Wiltshire Initiative, part of Business West, who said they showed how susceptible the area is to shifts in the world economy.
The survey, for the third quarter, was completed by 110 businesses in Swindon and Wiltshire and showed that almost all major indicators were down on the quarter and below the levels of this time last year. 
Following second quarter signs of a bounce back after a slow start to 2015, the latest set of results raised alarm bells over the direction of the local economy, said Mr Larrard, pictured.
Worryingly, sales decreased sharply with domestic sales down 15 percentage points to 38%, and international sales down 10 points at 34%.
Recruitment also fell – down two points to 23% – although expectations to take on staff over the next three months increased two points to 27%
Cashflow decreased three points to 32% and overall business confidence dropped four points but remained high at 66%.
Mr Larrard said: “This quarter’s results make for tough reading, with a decrease in most major indicators both on the quarter and the year.
“Last quarter we saw signs of a bounce back after a slow start to the year, but the last three months have seen a shift back. Drops in domestic and international sales, recruitment, cashflow and confidence raise alarm bells in the midst of growing global uncertainty.
“Look further afield from Swindon and Wiltshire and it’s been a turbulent couple of months for the global economy.”
He said the impact of China’s ‘Black Monday’ in August, when hundreds of billions of pounds were wiped off worldwide financial markets – including £74bn off the FTSE – had been felt in Swindon and Wiltshire.
“We know from past experience that our region is susceptible to global market trends given our high dependence on private sector employment and closer proximity to London, so this quarter’s survey results should come as no surprise,” he said.
“Although the strength of the global economy is being questioned, which is a major concern, it isn’t all bad news. This month’s data shows unemployment in our region is the lowest in the UK, and when you factor in that business confidence is still at high 66% the picture is less alarming. The message coming out of the figures is that although decreases across the board are a cause for concern, there are still reasons to be optimistic going forward.”
