More than 6,000 jobs were created across the South West last year as investment by overseas firms in the region recovered to its strongest for six years.
The South West attracted 43 Foreign Direct Investment (FDI) projects in 2023 – a 23% increase on the previous year and the highest total since 2017. 
According to the latest UK Attractiveness Survey from accountancy group EY, the region’s FDI bounce back outpaced Greater London, where the increase was lower at 20%.
The report shows the growth boosted the region’s share of all UK projects to 4.4%, its second highest market share in the past decade.
The top three sectors – software & IT, machinery & equipment and utility supply -continued to contribute significantly to the South West’s FDI, making up more than half (53%) of projects.
Utility supply, which was the region’s top sector for FDI in 2022, was the only sector in the top three to show a fall in project numbers in 2023.
The South West also attracted five business services projects, the first time the region has attracted investment from the sector since 2020.
Last year’s South West FDI projects generated a total of 6,010 jobs – a decade high which placed it fourth out of 12 UK regions for FDI-related employment.
Bristol continued to feature in the top 20 best UK cities for FDI, moving up three places from eighth in 2022 to fifth last year.
The city attracted 17 projects, up by four on the previous year. Some 39% of the South West’s 2023 FDI projects were located in Bristol.
EY South West office managing partner Karen Kirkwood, pictured, said the digital technology sector played a significant role in the South West’s increased FDI total.
“These high-value, knowledge-based sectors tend to generate well-paid jobs and growing its share of tech projects will place the South West in good stead for attracting well-paid employment opportunities and enhancing its attractiveness for further investment in the future,” she added.
The South West was one of only four UK regions to benefit from an increase in FDI project numbers last year.
The biggest year-on-year declines were in Wales (52%), Northern Ireland (35%) and the East Midlands (35%). These regions have traditionally been magnets for FDI projects, particularly in manufacturing.
Outside of London, the UK’s most successful city for FDI was Birmingham, which attracted 67 inward investment projects last year – a 139% annual increase.
Edinburgh retained its position as the UK’s second-best performing city for FDI outside of London, despite project numbers falling by 20% to 32.
Projects into Manchester declined by 31% – from 45 to 31 – which meant it dropped from first to third place, its lowest ranking in a decade.
EY has 21 offices across the UK employing around 21,100 people.
