Fewer businesses in Swindon and Wiltshire are growing their sales and orders as national and global factors take the shine off their optimism at the start of this year.
The latest survey by Business West, the region’s largest business group, also shows more of its Swindon and Wiltshire members had lower cashflow over the past two months. 
The survey of more than 200 companies in February and March found that 42% increased domestic sales and 39% increased orders – both down by two percentage points on the previous three months.
More worryingly, the slowing global economy and the up-coming EU referendum appear to have hit exporters, with 37% achieving higher international sales and 34% higher orders – a fall of 18 and 19 points respectively.
The number of firms growing their cashflow declined by eight points to 30%. However, despite this 58% of businesses remain confident for the year ahead.
More firms took on more staff over the quarter – up two points to 25% – and hiring intentions for the next three months are also up two points to 26%.
Ian Larrard, pictured, director of Business West’s Swindon and Wiltshire Initiative, said: “These survey results bring us back to ground after some encouraging news to close out 2015.
“It appears that global headwinds and the uncertainty surrounding the EU referendum have had a negative effect on our local economy.
“Our region has a higher than average dependency on the private sector, so this slowdown comes as no surprise after warning sign at the national level. The findings form part of the respected British Chambers of Commerce Quarterly Economic Survey, which found that the UK economic growth is starting to soften.”
He said the EU referendum appeared to have had an impact on firms’ ability to trade overseas as international sales and orders were down in the last quarter ahead of the referendum in June.
“It isn’t all bad news, as over half of businesses are still confident for the year ahead,” he added. “But this slowdown should keep our region’s businesses on their toes and remind government that long term prosperity is far from guaranteed.
“After the Chancellor delivered a business friendly Budget last month, we must see even more action from Government to address issues that hurt firms day-in, day-out, such as the skills gap and ageing infrastructure.”
Business West represents more than 16,000 businesses across the South West through its network of chambers of commerce and initiatives.
