South West business activity expands for third straight month in September

Private sector output and new business across the South West of England expanded for a third consecutive month in September, according to the South West Growth Tracker report published on October 16, 2026, by NatWest Group.

The South West Business Activity Index recorded a reading of 51.5 in September, down from 53.0 in August. Because any figure above the 50.0 baseline signals growth rather than contraction, the figure points to ongoing expansion in regional business operations, even as the rate of expansion moderated slightly from the previous month.

The expansion in September was driven by continued gains in total private sector output alongside a sustained increase in incoming new business orders across the South West region.

Workforce Expansion and Export Indicators

Employment figures in the South West also grew during the month. Regional staffing levels rose for the second consecutive month in September, according to the NatWest Group report.

This employment increase made the South West one of only five regions across the United Kingdom to register job gains during September, pointing to relative strength in the local labor market compared to most other parts of the country.

Trading conditions for South West businesses looking abroad also improved. The South West Export Climate Index reached its highest level since May 2022, driven by favorable conditions in primary export markets linked to the region.

Input Costs and Organizational Context

While output, employment, and export indicators moved upward, regional businesses faced persistent cost pressures during September. Input cost inflation remained elevated throughout the month across the South West private sector.

NatWest Group attributes the continued cost inflation to higher prices for raw materials, fuel, and energy expenses, which increased total operating costs for businesses in the region.

The monthly tracker report is compiled and issued by NatWest Group, a UK-focused banking group that currently serves more than 20 million individual and commercial customers. The organisation provides services in retail, commercial, and private banking markets.

NatWest Group operates through several banking brands, including NatWest, Royal Bank of Scotland, Ulster Bank, Coutts, Lombard, Holt's, RBS International, and FreeAgent. The group has also stated a target to align with the United Kingdom's legal commitment to achieve net zero emissions by 2050 across its financed emissions, assets under management, and operational value chain, with an intermediate goal to halve the climate impact of its financing activity by 2030 against a 2019 baseline.