Business confidence in Wales rose 35 points during December to 52%, according to the latest Business Barometer from Lloyds.
Companies in Wales reported higher confidence in their own business prospects month-on-month, up 39 points at 68%. When taken alongside their optimism in the economy, up 30 points to 35%, this gives a headline confidence reading of 52% (vs. 17% in November).
A net balance of 20% of businesses in the region also expect to increase staff levels over the next year, up 15 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 automation or AI (52%), investing in their team, for example through training (34%) and entering new markets (34%).
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 rose five points in December to 47%.
While firms’ confidence in their own trading prospects dropped one point to 52%, their optimism in the wider economy strengthened 11 points to 42%.
London and the West Midlands were the joint-most confident parts of the UK in December (both 63%) followed by the East Midlands (56%).
Sector Insights
Construction saw the sharpest improvement, up 22 points to 61%, its highest level seen this year. Manufacturing also was up five points to 49%, while retail firms edged higher to 47%, likely reflecting seasonal demand. Services confidence fell one percentage point to 41%.
Nathan Morgan, area director for Wales at Lloyds, said: “This is a positive end to 2025, and a strong foundation for Welsh firms embarking on new growth strategies for the year ahead.
“Whatever their ambitions, we’ll be ready to help them capitalise on opportunities as they arise.”
Hann-Ju Ho, Senior Economist, Lloyds Commercial Banking, said: “It is great to see business confidence ending the year on a higher note, up ten points from the start of the year.
“The uplift in business confidence is driven by an 11 point increase in optimism in the wider economy, increasing to a four month high.
“Confidence changed most in the construction sector which saw a big boost in December, to the highest level this year.”
