Welsh business confidence at ten-month high
Welsh business confidence rose to a ten-month high in December, according to new figures from NatWest’s latest Wales Growth Tracker.
The monthly survey of manufacturing and service sector firms showed business activity stabilising at the end of 2025, supported by the first rise in new orders for six months.
The headline Wales Business Activity Index stood at 49.4, up from 46.8 in November, signalling the slowest fall in output during a four-month sequence of decline.
NatWest said the improvement reflected stronger client demand and more successful advertising campaigns, though employment continued to fall slightly amid cost-cutting by some firms.
Jessica Shipman, Chair of the NatWest Cymru Regional Board, said: “The Welsh private sector showed signs of improvement as the year was brought to a close, with a renewed expansion in new business. Although output continued to decline, the pace was only marginal amid stronger demand conditions.
“Firms were also more upbeat in their expectations for 2026, as business confidence jumped to a ten-month high.”
The tracker showed that output charges rose at the fastest rate in seven months, with many companies increasing prices to offset higher energy, food, and transport costs. Input cost inflation was the sharpest since August 2025.
Across the UK, Wales was among the regions still seeing a modest contraction in activity, but its performance improved compared to the autumn. London led overall business growth, while the North West saw the sharpest decline.
NatWest’s data, compiled by S&P Global, also found:
A modest rise in new orders – the first since June 2025.
Job cuts continued, but at a slower pace than earlier in the year.
Optimism about future business activity reached its highest since February 2025.
The report noted that Welsh firms remain cautiously optimistic for 2026, linking expectations to new client demand, increased investment in advertising, and expansion into new markets.
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