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PRIVACY
Economic Development

Business confidence in Wales lowest in º£½ÇÊÓÆµ as firms face cost of business crisis

However Welsh export growth outpaced the rest of the º£½ÇÊÓÆµ

Input price inflation, staffing levels and skills shortages are some of the challenges Welsh firms cited(Image: SHARED CONTENT UNIT)

Business confidence in Wales is the lowest in the º£½ÇÊÓÆµ as companies face a cost of doing business crisis.

According to a quarterly survey of chartered accountants, Welsh businesses are the least confident in their prospects for the coming year.

The ICAEW’s business confidence monitor (BCM) for Wales for Q3 2022, found that sentiment had plunged into negative territory as companies faced challenges from input price inflation, staffing levels and skills shortages.

Read more: º£½ÇÊÓÆµ retailer Flannels to move into bigger Cardiff store on Queen Street

The survey reported that input prices rose by 5.4% in Wales, the fastest growth rate since the BCM began, due to ongoing supply-chain problems and Russia’s invasion of Ukraine.

Energy and commodity prices have dramatically increased, particularly affecting Wales’ manufacturing sector.

Staff turnover was also a greater challenge in Wales compared to other parts of the º£½ÇÊÓÆµ, affecting 57% of all Welsh firms - the highest proportion of any º£½ÇÊÓÆµ nation or region.

The availability of both non-management and management skills is also a growing issue, impacting 51% and 35% of Welsh firms respectively, with rising labour costs as a result of challenges with recruitment.