The bitter EU referendum campaign and fears over its outcome hit Bath firms’ confidence and impacted on the wider economy even before the result to leave was announced, according to the latest survey by Business West, the region’s largest business organisation.
On all major indicators, the poll of more than 550 businesses across the West of England showed most of them performing worse than earlier in the year, with domestic and overseas sales and orders, confidence and job creation all down.
The survey was held in May and June before referendum day on June 23. 
As reported by Bath Business News two weeks ago, some companies in the Bath area have already told Business West they have decided to lay off staff, raise price or scale back on investment plans as a result of the Brexit decision.
However, some are seeking opportunities to take advantage of the weaker pound and the overall feeling is that most firms will overcome any short-term impact.
Other results from the survey show:
- Domestic sales (39%) and orders (34%) fell by four and six points compared to the previous quarter.
- International sales dropped seven points to 32%, and orders fell eight points to 29%.
- Under a third of firms (29%) recruited in the last three months, and recruitment intentions dropped by four points to 30%.
- Business confidence fell by three points, however almost two thirds of businesses remain confident about the year ahead.
James Durie, of Business West – which runs Bath Chamber of Commerce – pictured, said: “It’s early days to properly understand what impact the EU referendum decision has had on business across the South West, beyond that it shows a short-term stalling.
“Our latest survey shows that our region’s economy showed signs of slowing amid the uncertainty leading up to the decision.
“After a strong start to the year, recruitment intentions fell and firms reported drops in both domestic and international orders ahead of the momentous vote.
“Most groups questioned by Business West believe that, despite the current uncertainty, in the long term the future is bright and that British companies are resilient enough to deal with any temporary downturn.
“Although the results of this survey will be met with some concern, there are still reasons to remain confident.
“In the West of England we have the best performing economy outside the South East and, as a strong trading city and region, we have great opportunities to build stronger exports overseas.
“And a week after the referendum Bath & North East Somerset, Bristol, South Gloucestershire and councils voted to push ahead with the £1bn West of England devolution deal.
“The creation of a new mayoral combined authority by May 2017 will give this area the chance to put significant investment into priority areas for business, such as transport, housing and skills.
“The business community has backed the devolution deal right from the start and believes it will strengthen this area for the long term and benefit everyone who lives and works here. This deal now going ahead sends out a strong signal of long term confidence and investment.”
A Business West poll of 700 firms across Bath, Bristol, Gloucestershire and Swindon and Wiltshire ahead of the EU referendum vote showed that 62% of business people had planned to vote to remain, compared to 22% who said they would vote to leave – a ratio of almost three to one.
Business West, which represents more than 18,000 businesses across the South West through its chambers of commerce and initiatives, wants to hear how Brexit is affecting businesses in terms of confidence, investment and recruitment decisions. They can do this by contacting its policy team at policy@businesswest.co.uk
