Business confidence in Wales was the highest of any UK nation or region in June, according to the latest Business Barometer from Lloyds.
Companies in Wales reported higher confidence in their own business prospects month-on-month, up 14 points at 66%. When taken alongside their optimism in the economy, up 47 points to 68%, this gives a headline confidence reading of 67% (vs. 36% in May).
A net balance of 59% of businesses in Wales also expect to increase staff levels over the next year, up 36 points on last month.
Looking ahead to the next six months, Welsh businesses identified their top target areas for growth as introducing new technology, such as AI or automation (47%), entering new markets (41%) and investing in their team, for example through training (40%).
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 increased one point in June to 51%.
Firms’ optimism in their own trading prospects strengthened one point to 57%, while their confidence in the wider economy also rose one point to 45%.
London (64%) followed Wales as the second-most confident part of the UK.
Sector Insights
Business confidence in the manufacturing and retail sectors saw significant gains this month, with 12-point rises in both sectors to 52%. For manufacturing, this demonstrates an 11-month high.
Construction and services however saw decreases in confidence, with falls by five points and four points respectively.
Samantha Noble, regional director for Wales at Lloyds, said: “Welsh business confidence has soared – buoyed by greater optimism from firms around both their own prospects and the wider economy.
“Companies across the country will now be looking to build on this outlook. Whether it’s introducing new technology or entering new markets, we’ll be ready to help them take the steps they need for further growth.”
Hann-Ju Ho, Senior Economist, Lloyds Commercial Banking, said: “Business confidence has continued its positive momentum, following the significant gains we saw in May.
“In particular, the sustained rise in hiring intentions suggests that while firms do still face challenges, they may be starting to look beyond short-term staffing needs and preparing for future growth.”
