Welsh business confidence rises in September

The Business Barometer, which surveys 1,200 businesses monthly, provides early signals about UK economic trends both regionally and nationwide.  

It found that companies in Wales reported higher confidence in their own business prospects month-on-month, up one point at 36 per cent. When taken alongside their optimism in the economy, down one point to 27 per cent, this gives a headline confidence reading of 36 per cent, up from 35 per cent in August. 

Looking ahead to the next six months, Welsh businesses identified their top target areas for growth as evolving their offering, for example by introducing new products or services (56 per cent), investing in their team, for example by hiring new employees (38 per cent), and entering new markets (26 per cent). 

UK business confidence in September dipped slightly, to 47 per cent down from August’s 50 per cent. 

The joint-most confident regions in the UK were the West Midlands and London, both reporting overall confidence of 59 per cent.

Sam Noble, regional director for Wales at Lloyds Bank Commercial Banking, said: “While this month’s increase in confidence was small, Welsh businesses continue to show optimism, with more firms looking to evolve their offering by introducing new products and services. 

“If businesses are going to pave the way for growth, they need solid working capital and the appropriate resources in place. We’ll continue to be by their side as they strive to turn their plans into action.” 

Hann-Ju Ho, Senior Economist, Lloyds Bank Commercial Banking, said: “Although overall confidence fell this month, that fall was from a nine-year high and businesses remain positive about their own trading prospects.

“The more mixed picture for economic optimism points to some businesses maintaining a degree of caution. While we still expect economic expansion, it may occur at a slower rate than the first half of 2024.”