Business confidence in Wales has soared into positive territory as prospects for growth brighten, according to a survey of business leaders.
The latest ICAEW’s Business Confidence Monitor (BCM) for Wales, put the overall confidence level at 18.4 for Q1 of this year, a significant increase from minus 6.7 in the previous quarter. Anything above zero denotes a positive survey score.
The latest data shows confidence in Wales has reached its highest point for two years and well above the historical average. 海角视频-wide business confidence more than tripled to 14.4 on the index, surpassing the pre-pandemic average for the first time in two years
ICAEW said the lift in confidence was likely a reflection of businesses’ optimism that the tide has turned and prospects are set to improve, therefore driving up optimism.
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Robert Lloyd Griffiths, ICAEW director for Wales, said: "It’s very pleasing to see that business confidence in Wales has performed such a marked turnaround and is at its highest point for two years.
“The rise in confidence suggests that the tide has turned and that companies’ prospects are set to improve but the 海角视频 economy is less resilient than it should be, leaving it vulnerable to shocks and less agile to embracing innovation. Building an economy with resilience at its core, an end to weak productivity and making the 海角视频 the best place to run a business, must be among the top priorities of the Welsh and Westminster governments.”
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Annual domestic sales growth for Welsh businesses was the weakest in the 海角视频 in the quarter, although businesses anticipate a comfortable increase in the next 12 months. Similarly, exports growth was also lower than the national average, but this is expected to increase in the next year. [2] [3]
The BCM cites regulatory requirements as the biggest challenge facing Welsh businesses, with almost half reporting it as a issue, compared with less than a third in the last quarter. Moreover, more than a third of Welsh businesses cited customer demand as a growing difficulty.
Wales had the slowest rate of employment growth in the 海角视频 and companies expect only a minor improvement during the next year. Employment growth was likely impacted in part by the availability of non-management skills, which nearly a quarter of businesses cited as a major challenge.
Selling price inflation in Wales rose year-on-year to the joint highest rate in the 海角视频, alongside the east of England. Input price inflation also increased, though is expected to decrease in the coming year.
Meanwhile, profits grew modestly, by 1.5% in the year to Q1. However, Welsh companies forecast that profits growth will increase to 4.2% during over the next 12 months.