Business confidence levels have fallen sharply in Wales but still remain in positive terrain, according to the latest business barometer from Lloyds.
Welsh firms reported lower confidence in their own business prospects month-on-month, down 38 points at 27%. When taken alongside their optimism in the economy, down 41 points to 19%, this gives a headline confidence reading of 23% (compared to 63% in August).
Anything above zero in the barometer represents a positive net balance and vice versa. The fall in confidence in Wales this month was greater than the 海角视频 as whole where overall confidence fell 12 point to 42%.
Over the next six months Welsh businesses identified their top target areas for growth as investing in their team, for example through training (42%), introducing new technology (27%) and evolving their offering, for example by launching new products or services (27%).
The north east of England was the most confident 海角视频 nation or region, climbing 13 points to 68%, followed by London (57%)
Firms across manufacturing, construction, retail and services all saw confidence fall this month. The biggest change was in manufacturing with a decline of 31 points to 31%, a two-year low. Retail sentiment fell 17 points to 40%, its lowest level in four months. Similarly, confidence in the service sector fell six points to 47%, the lowest reading since April. Construction continued to decline for the fourth consecutive month, dropping five points to 35%.
Samantha Noble, director for Wales at Lloyds, said: 鈥淒espite this month鈥檚 fall in confidence, Welsh businesses are continuing to identify ways to strengthen their resilience and drive further growth. And it鈥檚 particularly encouraging that they鈥檙e investing in their teams as a priority 鈥 something that will have benefits for the wider Welsh economy. We鈥檒l continue to provide our on-the-ground support as businesses pursue their next steps.鈥
Hann-Ju Ho, senior economist, Lloyds Commercial Banking, said: 鈥淲hile increased market volatility earlier in the month may have impacted confidence, levels of trading prospects and economic optimism remain above their long-term averages. Businesses may find reassurance that the Bank of England is expected to reduce interest rates further in the next six months, while long-term global bond yields have calmed which, if sustained, may have a positive impact on businesses as we move into the last few months of the year.鈥
