Welsh Business Optimism Outshines UK Average in Latest KPMG Survey
Professional services firm KPMG has released its annual private enterprise barometer, revealing that Welsh business owners are significantly more positive about growth prospects than the broader UK average. The survey indicates that an impressive 89% of businesses in Wales are confident about achieving growth in 2026, which is 2% higher than the UK average of 87%.
Key Drivers of Confidence and Strategic Investments
Increased demand for products and services emerged as the primary reason for this optimistic outlook, cited by 43% of Welsh businesses. Additionally, 42% of respondents highlighted plans to introduce new technology as a major factor fueling their confidence for the year ahead. Technology also stands out as a leading investment priority, with 39% of Wales-based firms focusing on digital transformation, closely followed by 38% investing in artificial intelligence, both aligning with UK averages.
Diversification and International Expansion Plans
Diversification is a top agenda item for private businesses across Wales, with more than half (57%) looking to introduce new service lines and broaden their client offerings. Appetite for internationalisation is notably high, with 63% of businesses confirming that their interest in international expansion has grown over the past 12 months. Furthermore, 56% are targeting new markets as a diversification strategy over the next five years, with Western Europe being the most favoured location for expansion, prioritized by 53% of respondents.
Funding and Growth Strategies
The survey also reveals a strong appetite for alternative funding options, with nearly half (47%) of regional businesses open to private equity investment, matching the UK average. This reflects a growing willingness among firms to explore new capital sources to support innovation and accelerate growth. Regarding mergers and acquisitions, 41% are open to opportunities but not actively seeking them, while 36% are focused solely on internal growth, and 28% are actively pursuing acquisitions.
Expert Insights on Wales' Economic Momentum
David Williams, Wales and south west regional office senior partner at KPMG UK, commented on the findings, stating, "Wales' impressive confidence heading into 2026 puts it near the top of the leaderboard for this year's survey. This optimism is being driven by real demand for products and services, combined with strategic investment in tech and diversification." He added, "More broadly, it's a pivotal moment for Wales. Major investment and projects like the Celtic Freeport are creating genuine momentum. And businesses are responding by positioning themselves to capitalise. Ambition to enter new markets is particularly striking, with over half of respondents eyeing the prospect. Combined with Wales' growing strengths in renewable energy and infrastructure development, these businesses can be seen to be actively building the capabilities to deliver sustained growth."
