Business confidence in Wales rose three points during October to 39%, according to the latest Business Barometer from Lloyds.
Companies in Wales reported higher confidence in their own business prospects month-on-month, up three points at 49%. When taken alongside their optimism in the economy, up three points to 30%, this gives a headline confidence reading of 39% (vs. 36% in September).
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 (41%), evolving their offering, for example by introducing new products or services (36%) and introducing new technology (32%).
A net balance of 25% of businesses in the region also expect to increase staff levels over the next year, up five points on last month.
The Business Barometer, which surveys 1,200 businesses monthly, provides early signals about UK economic trends both regionally and nationwide.
Overall UK business confidence dipped slightly in October to 44% – down three points from September’s 47%.
This was driven by marginal falls in firms’ confidence about their own trading prospects (53% vs. 56% in September) and the economy (35% vs. 38% in September).
The North East of England was the most confident UK nation or region in October (63%), followed by London (56%) and the North West (53%).
Firms’ trading prospects pulled back for the third consecutive month in manufacturing to 46%, the lowest level since March. There were also moderate declines of 3 points in both retail and services to 51% and 57% respectively.
Expectations in construction bucked the trend, rising to 50%.
Sam Noble, regional director for Wales at Lloyds, said:
“It’s encouraging to see Welsh business confidence continue to build.
“Businesses have clear plans for further growth, with many investing in their staff – something that won’t just bring benefits to their operations, but will also strengthen the wider economy. Whatever firms’ plans, we’ll continue to be by their side with our support.”
Hann-Ju Ho, Senior Economist, Lloyds Commercial Banking, said:
“Although overall business confidence dipped in October, it follows a sustained period of significant optimism, and business sentiment remains above historical levels. Encouragingly, many businesses remain confident in their own trading prospects, and the increase in hiring intentions suggests more employers will want to grow their workforce.
“Businesses’ broader economic outlook continues to reflect this rounded picture, and as they move into the final part of the year, they will look to manage these considerations effectively.”
