BUSINESS confidence in Wales surged by six points to 43% in June, according to the latest Business Barometer from Lloyds Bank Commercial Banking. This is in stark contrast to the overall UK trend, where confidence fell.

Companies in Wales reported increased confidence in their own business prospects, with a three-point rise to 38%. Optimism in the broader economy climbed even higher, up nine points to 48%. This combined to give a headline confidence reading of 43%, up from 37% in May.

Growth Targets

Looking ahead, Welsh businesses have identified their key growth areas for the next six months. Nearly half (47%) are focusing on investing in their team through training. Additionally, 43% plan to evolve their offerings by introducing new products or services, and 26% are investing in sustainability initiatives.

The Business Barometer, which surveys 1,200 businesses monthly, offers early insights into economic trends both regionally and nationwide.

The National Picture

Across the UK, overall business confidence dipped by nine points in June, settling at a net balance of 41%. Despite this decline, confidence levels remained above the long-term average of 28%.

Businesses reported lower confidence in their trading prospects, which fell by 10 points to 44%. Economic optimism also decreased, down seven points to 39%. However, both figures remained relatively strong.

Yorkshire and the Humber led the way as the most confident UK region in June, with a confidence level of 48%, followed closely by the North East of England (47%) and the East Midlands (46%).

Sector Insights

June’s sector-specific results were mixed. Three of the four sectors experienced declines in trading prospects. Confidence in the construction sector fell by 16 points to 42%, retail dropped by 14 points to 35%, and services decreased by 11 points to 46%. Manufacturing was the exception, with a slight increase of two points to 51%.

Expert Commentary

Sam Noble, Regional Director for Wales at Lloyds Bank Commercial Banking, commented on the findings:

“This month’s Business Barometer shows that Wales is bucking the UK-wide trend. As businesses look to capitalise on greater confidence, it’s important that they keep a close eye on working capital. Rapid growth, which can come with new opportunities, may quickly tie up funds in working capital, restricting businesses’ financial flexibility. Identifying working capital pressure points in advance and using specialist tools like invoice finance or asset-based lending can unlock funds that can help fuel firms’ ambitions.”

Hann-Ju Ho, Senior Economist at Lloyds Bank Commercial Banking, added:

“These results suggest a slight drop in business confidence in June as firms’ trading outlook and economic optimism fell below levels seen in recent months. However, these results are still broadly in line with the positive readings we were seeing towards the start of the year. Fewer businesses indicated that their prices would increase in the next few months, which aligns with last week’s fall in inflation figures. Meanwhile, there was a mixed set of results across the sectors, with confidence falling in construction, retail, and services following last month’s increase.”

Wales continues to demonstrate resilience and optimism, standing out in a challenging economic landscape.

SOME of Wales’ top hospitality operators shared insights into their net zero journeys, with a particular focus on the impact of new legislation rolled out in April.

The likes of hotels, restaurants, pubs, and bars have had to separate out their recycling, including food waste of more than 5kg per week, under Welsh Government regulations.

And less than two months on, the Institute of Hospitality hosted an event in Cardiff to discover the impact on organisations.

Keenan Recycling, the UK’s largest food waste recycler, which went from servicing 300 sites in Wales to 1,500 in the first few weeks after the latest regulations came into play, sponsored the seminar at The Parkgate Hotel.

Grant Keenan, co-founder and managing director of Keenan Recycling, chaired a panel discussion.

He said: “It was fascinating to hear directly from those responsible for ensuring the new laws were adhered to and how vital environmental sustainability is to their growth and business success.

“We have increased our collections by five-fold and have been able to support our customers every step of the way, leaning on our experience of Scotland going through the same legislation changes in 2017.

“For us, it’s understanding what’s important to our clients. As well as the logistics of ideal collection location and times, it’s assisting them with their own journey to net zero.

“For example, we fall under Scope 3 data for many organisations, and being able to offer a service that sees the trucks fuelled by the waste they collect is hugely beneficial to users.”

The panel included industry professionals who have been involved in implementing the new laws. They offered insight into the challenges faced and the impact of sustainability on the sector.

Lucy Wonnacott, marketing manager at the Port of Milford Haven, said: “Educating our staff and customers was a critical success factor. We have a wide range of commercial tenants, from small retail units to communal office buildings and industrial properties.

“The education piece was a big undertaking, but it ensured the roll out was communicated and managed responsibly.

“Speaking to fellow businesses, while they knew of the regulations, they hadn’t grasped the complexities of the logistical elements of the changes.

“People are definitely on board with separating their recycling. Sustainability means a lot to consumers. It’s part of the decision-making process for buying a product or service, which means brands must be genuine and not greenwash.”

Fitzroy Hutchinson, energy and sustainability manager for The Celtic Collection, which includes the Celtic Manor Resort in its portfolio, said: “We have 1,400 members of staff, and our environmental efforts are central to all activities, as we want to build on the longstanding legacies we have created.

“Adhering to the latest regulations was a challenge with elements including financing the new bins, education of staff and guests, and managing site audits.

“There is a clear interest from our guests and event clients in our environmental credentials. A decade ago, we might answer sustainability questions from event clients in a single page, but now those questions are much more numerous and technically rigorous. We also have a detailed section of sustainability content on our website.”

Another member of the panel was Will Sowerby, content and communications lead at Pact Coffee, a speciality-grade coffee subscription, who said: “Our customers are constantly asking questions regarding all things environmental, social, and governance (ESG).

“That’s where ESG reports and being a B-Corp comes in handy. It’s a clear and obvious signal you genuinely care about your operations beyond price.”

The Institute of Hospitality’s CEO Robert Richardson FIH MI commented: “Environmental issues remain a hot topic for the hospitality industry. Wales has an outstanding reputation for achieving success on ‘green’ outcomes, so it was really appropriate to host our latest Above & Beyond event in Cardiff and tap into that expertise.

“Wales has the best recycling rate in the world, with 65 per cent of waste diverted from landfill. This is an incredible achievement.

“Listening to our panel members today, it’s clear that while there were challenges with the initial rollout of the new laws in Wales, there is passion in ensuring sustainability is at the heart of all operations.”

DANIEL DAVIES of Lampeter, and owner of Daniel Davies Plumbing & Heating Services has claimed two highly esteemed awards in a national competition that recognises the UK’s best heating installers.

Now in its ninth year, the Heating Installer Awards recognise the often-unsung superstars across the UK heating and plumbing industry who deliver an exceptional quality of work and demonstrate commitment to customer satisfaction.

Daniel saw off stiff competition from hundreds of outstanding entries to be named as the best heating installer in Wales as a result of a written submission detailing a stand-out project, his excellent customer service, and technical expertise. The submission was verified by customers before being scrutinised and marked anonymously by a number of industry-acclaimed judges, who determined him as the winner of the Welsh category.

Following this, Daniel undertook a competitive, multi-stage judging process, consisting of a response-to-scenario test scored by industry experts, as well as an online public vote wherein customers and industry professionals could vote for him. Daniel particularly impressed the judges with his knowledge of renewables and customer-centric approach.

As a result of this work, at the national awards presentation on 26^th June, Daniel won the Bronze award for his work having sought off competition not only from within Wales, but from across the UK, too.

Commenting on his achievement, Daniel said: “To be recognised in the highly talented and competitive Wales region, let alone be titled as the national Bronze Winner, is an achievement I’m incredibly proud of. It’s so rewarding to be commended by industry experts, my customers, and the public for my work. I look to the future and where this accolade will take us.”

The awards are supported by leading names from across the industry including Polypipe Building Products, Samsung Climate Solutions, Stelrad, The IPG and CIPHE.