September data also signalled a third successive monthly expansion in new business at Welsh firms.
The pace of growth quickened to the joint-sharpest since March (alongside April 2024) despite being only modest overall. Anecdotal evidence attributed the rise in new orders to stronger client demand.
Welsh private sector businesses recorded a renewed decrease in staffing numbers in September, thereby ending a six-month sequence of job creation. Panellists linked the drop to the non-replacement of voluntary leavers.
Meanwhile, companies raised their selling prices at a historically elevated pace that was the sharpest since May. Firms noted that more upbeat demand conditions allowed them to pass-through higher costs to customers.
Jessica Shipman, chairman, NatWest Cymru Regional Board, said: “The latest report shows there was much to be positive about in September.
“A faster rise in new orders and uptick in business optimism following greater confidence at customers is good news. More upbeat demand conditions also allowed firms to raise their selling prices at a sharper rate in a bid to protect margins amid a slower increase in cost burdens.
“But despite greater confidence among Welsh firms, evidence of spare capacity led to a renewed round of job shedding. Growing new order inflows and potential strain on capacity from supply issues may push companies to expand staffing numbers in the coming months, however.”
A buoyant sales environment also supported greater optimism among Welsh businesses in the outlook for output over the coming year in September. The degree of confidence picked up from August and was historically elevated despite being slightly below the UK trend.
Meanwhile, the fall in workforce numbers was modest and the steepest since January. Moreover, the decline was the sharpest of the 12 monitored UK areas.
