Gross domestic product (GDP) in Wales fell in the first quarter of 2019 with a business group calling for action to inject momentum into the economy.
The latest Office of National Statistics figures showed a 0.5% fall in GDP in January to March 2019.
GDP is the sum (measured in pounds) of the value of goods and services produced in the economy.
Two consecutive quarters of negative GDP would officially put Wales in recession.
It comes two weeks after figures showing unemployment in the country on the increase.
Debbie Bryce, chief executive officer of West Cheshire & North Wales Chamber of Commerce, said: “These figures point to an economy under pressure from uncertainty over Brexit and weakening global economic conditions.
“There are positives with manufacturing growing by 1.6%, but this could be as a result of the stockpiling that was reported ahead of the original Brexit deadline in March.
“Government must take swift and tangible action to inject momentum and confidence into the UK economy, including the delivery of transformative infrastructure projects across the country.”
Manufacturing was a bright spot, it grew by 1.6% and had the highest contribution to growth in Quarter 1 (Jan to Mar) 2019, at 0.27 percentage points.
This was followed by health which grew by 1.0% and wholesale and retail trade which grew by 0.9%, making positive contributions to growth at 0.10 and 0.09 percentage points respectively.
The transportation and storage industry output fell by 17.6% and the information and communication industry fell by 4.5%. These industries made the largest negative contributions in this region, at negative 0.54 and negative 0.14 percentage points respectively.
Within the main industrial groups, the production sector was the main driver of GDP within Wales in Quarter 1 (Jan to Mar) 2019 at 0.21 percentage points, followed by the agriculture sector at 0.04 percentage points.
