Mid Wales firms reveal optimism despite trade challenges
Businesses in mid-Wales remain optimistic despite trade challenges and a continued hesitancy to invest in both equipment and training, according to a survey.
Chambers Wales South East, South West and Mid’s has revealed the results of its latest Quarterly Economic Survey, which said half of businesses stated they believe that turnover will improve over the next 12 months.
In addition, 42 per cent predicted that profitability would improve, a small rise of two per cent since the previous quarter.
However, investment and trade challenges persist, affecting business plans for long-term growth.
Over the last quarter, only 23 per cent of businesses in Wales increased their investment in plant and machinery or equipment and 16 per cent increased their investment in training.
Just over half of Welsh businesses (52 per cent) did not change their investment plans for plant and machinery or equipment and 66 per cent did not change their investment plans for training in quarter four of 2023.
While trade fared slightly better in quarter four than three of 2023, businesses in Wales have seen decreases in sales and orders both domestically and internationally.
UK sales and advance orders both fell by 35 per cent in quarter four, while export sales and advance orders to overseas markets each decreased by 44 per cent.
Almost three quarters of businesses in Wales identified new markets as an opportunity for their business to recover.
Paul Butterworth, CEO of Chambers Wales South East, South West and Mid, said: “Our latest Quarterly Economic Survey results show a small rise in business confidence and optimism in Q4; the shoots of confidence and growth are starting to appear as we begin the new year.
“However, the results also demonstrate the low growth economic climate businesses in Wales are currently operating in, as firms continue to report minimal movement in investment plans, skills development and trade.
“Building on the growth measures announced in the Autumn Statement, businesses will be looking to the Spring Statement in March for further assistance and, with a general election likely to happen this year, it is vital that a stable economy and long-term growth support is prioritised by policymakers.”
