Business confidence in Wales declined in May, contrasting with a slight uptick across the UK as a whole, according to the latest Lloyds business barometer.
Welsh Confidence Falls
The bank's survey for May reveals that Welsh companies reported lower confidence in their own trading prospects month-on-month, dropping by 11 points to 35%. When combined with their reduced optimism about the economy, which fell 19 points to 11%, the headline confidence reading stands at 23%—a significant decrease from 38% in April.
Since May last year, Wales has averaged an overall business confidence of 42%, with its highest level of 76% recorded in July and its lowest of 17% in November.
Growth Priorities
Looking ahead to the next six months, Welsh businesses identified key areas for growth: investing in their team through training (45%), investing in sustainability (38%), and introducing new technology such as AI and automation (33%).
UK Confidence Rises
Overall, UK business confidence rose three points in May to 47%. Confidence increased in seven of the 12 UK regions and nations, while declining in four. Northern Ireland saw notable gains, with the North East and West Midlands being the most confident regions.
Expert Comments
Nathan Morgan, area director for Wales at Lloyds, said: “Confidence may have fallen this month, but with summer drawing near, many businesses across Wales will be about to enter their peak season. They’re doing so with clear priorities to invest in their teams, new technology or sustainability measures, and we’ll be there to support their ambitions.”
Amanda Murphy, chief executive of Lloyds Business and Commercial Banking, added: “Business confidence edged up modestly in May, suggesting firms are beginning to steady after April’s decline. This month, confidence levels from businesses in the north east particularly stands out. It’s also reassuring to see that increased confidence from the construction sector has brought them more in line with their retail, services and manufacturing counterparts.”
“Across the UK, each region and nation presents unique opportunities and drivers of growth. We’ve seen first-hand what the right financial support and advice can do for ambitious businesses and are keen to continue supporting our customers as they grow - helping Britain prosper.”
