Welsh businesses are riding a wave of renewed optimism as confidence levels have skyrocketed to their highest point in more than two years, according to fresh data released today.
The latest Business Barometer from Lloyds Bank Commercial Banking reveals that company confidence in Wales jumped an impressive 14 points during May, reaching a remarkable 44% - significantly outpacing the UK-wide average of 41%.
Economic Momentum Building Across Wales
This surge in optimism isn't just a fleeting sentiment. Businesses across Wales are backing their positive outlook with concrete hiring plans, with 38% of companies indicating they intend to increase their workforce in the coming months. This represents one of the strongest employment intentions seen in recent years.
The economic momentum appears to be building steadily, with Welsh firms reporting greater confidence in their own trading prospects, which climbed six points to reach 41%. Even more strikingly, optimism about the wider UK economy surged by 22 points to reach 47%.
Regional Variations and National Picture
While Wales leads the charge in business confidence, other regions are also showing positive signs. The East of England recorded the highest confidence levels at 49%, followed closely by the North East at 47%.
Across the UK, business confidence maintained its strong position at 41% for the second consecutive month, marking the highest reading since early 2022. This sustained optimism suggests a growing resilience within the British business community despite ongoing economic challenges.
Sector-by-Sector Breakdown
The manufacturing sector emerged as particularly buoyant, with confidence jumping eight points to reach 46%. The services sector held steady at 42%, while retail confidence experienced a slight dip of three points to 38%.
This comprehensive data paints a picture of a Welsh business community that's increasingly confident about both its immediate prospects and the longer-term economic landscape.
