Business confidence in Wales fell seven points during November to 32%, according to the latest Business Barometer from Lloyds.
Companies in Wales reported lower confidence in their own business prospects month-on-month, down 15 points at 34%. When taken alongside their optimism in the economy, which held steady at October’s level of 30%, this gives a headline confidence reading of 32% (vs. 39% in October).
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 (47%), entering new markets (38%) and introducing new technology, such as AI or automation (31%).
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.
Overall UK business confidence dipped slightly in November to 41% – down three points from October’s 44% – but remained above the long-term average of 29%.
While firms’ confidence in their own trading prospects strengthened two points to a net balance of 55%, their confidence in the economy fell nine points to 26%.
London was the most confident UK nation or region in November (57%), followed by the West Midlands (51%).
Firms in the manufacturing sector reported the first rise in trading prospects in four months, with the net balance up three points to 49%. Companies in construction and services also indicated stronger business growth outlooks with net balances of 56% (up six points) and 61% (up four points), respectively. Retail firms, however, signalled softer prospects for a second month running, with the trading prospects’ net balance down six points at 45%.
Sam Noble, regional director for Wales at Lloyds said:
“Despite a slight dip in business confidence this month, Welsh businesses still have their sights set on growth and are being proactive in targeting new avenues for expansion, including introducing new technology and entering new markets.
“As businesses across the country put their plans into action, we’ll continue to be by their side with our on-the-ground support.”
Hann-Ju Ho, Senior Economist, Lloyds Commercial Banking, said:
“In November, the overall confidence metric fell by three points for the third month running. This is the lowest level since June, but still above the survey’s long-term average, which is ultimately positive from a longer-term perspective.
“These results suggest that while firms have mixed views about the economy, they see their businesses in a good place to cope with any challenges they might face. Hiring intentions, although moderating this month, haven’t fallen by much which is also positive news.
“Overall, these results show that businesses are still positive and feeling resilient, albeit with tempered views on the economic outlook.”
