Business confidence amongst firms in Wales rose in April, according to the latest Business Barometer from Lloyds Bank Commercial Banking. Companies in Wales reported higher confidence in their own business prospects month-on-month, up nine points at 42%.
When taken alongside their optimism in the economy, up three points to 22%, this gave a headline confidence reading of 32%. Welsh businesses identified their top target areas for growth in the next six months as diversifying into new markets (35%), evolving their offer (23%) and investing in sustainability (22%).
The Business Barometer, which surveys 1,200 businesses monthly, provides early signals about UK economic trends both regionally and nationwide. A net balance of 21% Welsh firms expect to increase staff levels over the next year, up one point on last month.
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Overall, UK business confidence climbed one point to 33% in April. Every UK nation and region reported a positive confidence reading and six out of 11 regions recorded a higher reading than last month. London reported the highest levels of business confidence at 47% (up nine points month-on-month), followed by East Midlands (up 18 points) and North East (up three points), both at 41%.
Firms’ outlook on their own trading prospects remained strong at 39% for the second consecutive month, and a net balance of 27% of businesses are intending to increase their staff levels, up two points on March.
Dave Atkinson, director for Wales at Lloyds Bank Commercial Banking, said: “It’s fantastic to see business confidence among Welsh firms continue to rise as we head into a month jam-packed with bank holidays and celebrations. The country’s retail, leisure and hospitality sectors in particular will be hoping this drives an increase in footfall and boosts consumer spending.
“It’s important that firms are prepared for any increase in business activity over the coming weeks. Welsh companies will benefit from strong working capital management and ensuring that additional funds are available to purchase any extra resources necessary to support with the anticipated spike in demand.”
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