Business confidence in Wales fell 36 points during April to 15%, according to the latest Business Barometer from Lloyds.
Companies in Wales reported lower confidence in their own business prospects month-on-month, down 32 points to 24%. When taken alongside their optimism in the economy, which dropped 38 points to 7%, this gives a headline confidence reading of 15% (vs. 51% in March).
Looking ahead to the next six months, Welsh businesses identified their top target areas for growth as investing in their team, for example through training (47%) evolving their offering, for instance by introducing new products or services (41%), and investing in sustainability (36%).
The Business Barometer, which surveys 1,200 businesses monthly and which has been running since 2002, provides early signals about UK economic trends both regionally and nationwide.
National picture
Overall, UK business confidence fell ten points in April to 39%.
Firms’ optimism in their own trading prospects dropped seven points to 50%, while their confidence in the wider economy fell 13 points to 28%.
The North East was the most confident UK nation or region in April (59%), followed by the West Midlands (53%) and the North West (52%).
Sector Insights
Confidence fell across the four broad sectors. Manufacturing confidence remained broadly unchanged from last month, falling by one point to 38%, while the construction sector saw the largest decrease in business confidence this month, declining 22 points to 26%. Retail confidence also fell by 13 points down to 45% and the service industry fell seven points to 40%, both now at three-month lows.
Samantha Noble, regional director for Wales at Lloyds, said: “This month’s drop in confidence reflects a fall in confidence at a UK level.
“We know that Welsh businesses are working tirelessly to bolster their resilience and drive fresh growth, and this data underlines these efforts – with the country’s businesses investing in their people and exploring how they can evolve their offering.
“As firms press ahead with their growth plans, we’ll continue to provide our support to help them seize every opportunity.”
Hann-Ju Ho, Senior Economist, Lloyds Commercial Banking, said: “With the announcement of global tariffs from the United States on 2nd April and the market volatility that followed, it is unsurprising that business confidence saw an impact this month.
“However, economic optimism remains higher than at the beginning of the year, showing businesses’ resilience in the face of recent challenges and overall confidence is still well above the long-term average of 29%, an average taken from over 20 years of analysis.”
