Showcasing the Best of Welsh Business

Welsh Business Growth Accelerates Again

SHARE
,

Welsh business activity rose at the sharpest rate in four months during June, boosted by an increase in new orders.

The Wales PMI from Lloyds Bank posted 55.9 in June, up from 55.0 in May, with activity growth in the home nation outstripping the UK average.

The rising rate of business activity was partly due to a boost in new orders, which increased for the eleventh month running.

Companies continued to hire more staff to complete this new work, with Welsh firms boosting employee numbers for 16 months in a row.

The weak pound meanwhile continued to pressure on firms, with input costs – which include raw materials, utilities and wages – rising for the twentieth consecutive month. Companies passed on some of their increasing cost burden to customers in the form of increased selling prices.

However, firms were confident about their prospects, with optimism amongst Welsh firms outstripping the UK average.

Allan Griffiths, regional director at Lloyds Bank Commercial Banking, said:

“Welsh firms experienced another positive month in June, despite the snap election causing uncertainty for many.

“In fact, it’s heartening to see that businesses generally are more confident than they were in May, with optimism levels rising considerably.

“Despite this, rising costs remain a worry, and it’s vital that companies manage their cash flow accordingly to capitalise on the opportunities that the increase in optimism may bring.”