Confidence Rebound Shows Green Shoots Are Taking Root

There’s no denying that UK businesses are operating in a challenging environment, navigating persistent cost pressures, inflation and global uncertainty. Amid the noise, Wales has delivered a welcome note of optimism.

The latest Lloyds Business Barometer shows that business confidence in Wales rose by eight points in April to 38%. The figure isn’t groundbreaking, but it marks a move against the wider UK trend, where overall UK business confidence fell by 11 points during the same period. And although sentiment has seen some quick shifts in the current environment, it also continues the slight upward trend seen in Wales over recent months.

So, while sentiment has softened nationally, Welsh firms are showing resilience and appetite to invest.

Plans for growth

This isn’t just blind optimism, and businesses here know that operating during global uncertainty can be challenging. But the data suggests Welsh firms are not simply waiting for conditions to improve, they’re taking practical steps to strengthen their position.

For instance, a net balance of 34% of businesses in Wales expect to increase staff levels over the next year, up nine points from March.

Meanwhile, the areas they are prioritising are equally telling. Almost half are targeting investment in their teams, including with training. More than four in ten are looking at new technology such as AI or automation, and 40% are focused on evolving their products and services.

This supports recent research showing that 86% of businesses in Wales have a clear view of their biggest opportunities for growth, which matters because clarity is often the first step towards action.

Making it happen

Once strategies are nailed down, access to finance will be important in the months ahead. Earlier this year, we announced our plans to make over £1 billion of new finance available to businesses across Wales in 2026, part of a wider pledge to give £35 billion in funding to companies operating and investing across the UK.

For Wales, this support can help turn confidence into tangible progress. It can back businesses as they invest in their people, adopt new technologies, develop products and services, and create jobs in communities across the country.

We’re already seeing what this looks like in practice. In Glamorgan, manufacturer and retailer Quad Bikes Wales recently secured more than £620,000 in Lloyds funding to purchase two farms, adding 70 acres to its existing operations. For a business that began as a vehicle repair shop in 2003 and now exports products across Europe and the United States, the funding has translated ambition into action.

Growth for all

For Wales more broadly, investment in people and innovation will be central to unlocking growth across the economy. It will help businesses manage cost pressures, improve efficiency and respond to changing customer needs. It will also support the creation of better jobs and stronger local economies.

Of course, confidence can be fragile, and businesses still need stability and the right support to act on ambition. Many firms remain understandably cautious, but the lesson of recent years is that disruption can come quickly and from unexpected directions.

With all this said, these most recent results point to Welsh businesses showing discipline. They are scrutinising costs and thinking carefully about where to invest. Above all, they are demonstrating the resilience that has long underpinned the Welsh economy.

Wales may not be immune from the pressures facing the UK economy, but April’s figures show that it is responding to the current environment with optimism and intent. Confidence is rising, hiring intentions are strengthening and businesses are focusing on the areas that can drive sustainable growth.

Challenges haven’t disappeared, but there are green shoots worth recognising – and momentum worth nurturing.