Output rises in January amid sustained increase in new orders

WELSH firms returned to growth in January, with business confidence climbing to its highest level in 16 months, according to the latest Cymru Growth Tracker from NatWest.

The Wales Business Activity Index — a seasonally adjusted measure of month-on-month changes across manufacturing and services — rose to 50.3 in January, up from 49.4 in December. Any reading above 50 signals growth, ending a four-month run of contraction for the Welsh private sector.

The improvement was supported by a continued rise in new orders, although the pace of expansion eased and remained only modest overall.

Business optimism strengthened for the third consecutive month, reaching its highest point since September 2024. Firms said they were hopeful that increased investment would help drive growth throughout 2026, despite ongoing concerns about the impact of higher prices on customer demand.

However, inflationary pressures remained elevated. Input costs rose at the joint-fastest pace since last August, matching December’s four-month high and remaining historically strong. Of the 12 UK regions monitored, only Northern Ireland recorded a sharper increase in cost pressures.

Welsh companies raised their selling prices for the second month in a row in an effort to pass on higher costs. The rate of price increases was the steepest since May 2025 and broadly in line with the UK average.

Despite the return to growth, staffing levels continued to fall. Workforce numbers declined at the fastest rate since December 2024 — the steepest reduction of any UK region — as firms cited financial pressures and cost control measures.

Backlogs of work fell at a marked pace, faster than in December, suggesting businesses were able to work through outstanding orders as output improved.

Jessica Shipman, Chair of the NatWest Cymru Board, said Welsh businesses were showing “growing optimism about future output”, but warned that cost pressures remained significant and were contributing to job losses.

Although activity returned to growth, the rate of expansion in Wales remained well below the UK average, and confidence levels were slightly weaker than the national trend.

Harper Adams study shows strong growth rates and smooth weaning at 35 days

A TRIAL carried out in 2025 at Harper Adams University has found that surplus lambs can achieve strong daily growth rates when fed milk replacer mixed and delivered cold from eight days of age.

The study, using Lamlac ewe milk replacer, recorded an average weaning weight of 15kg at 35 days of age. Individual lamb weights ranged from 10kg to 19kg, while average daily liveweight gain up to weaning reached 332g per day.

Dr Jessica Cooke, speaking on behalf of Lamlac, said feeding ewe milk replacer cold should be considered a proven and practical technique for producers managing surplus lambs during busy lambing periods.

“Feeding cold milk provides a simple, time-efficient and practical method of rearing surplus lambs on farm, particularly where warm water is not readily available or when lambs of different ages require milk at a consistent temperature,” she said.

“With good attention to detail and suitable environmental conditions, lambs can successfully maintain strong daily growth rates when reared on Lamlac mixed and fed cold from week one. It also reduces labour input compared with preparing and feeding warm milk.”

Colostrum and early management

The trial involved twenty-three Lleyn x Aberblack/Charolais lambs. All were left with the ewe for twenty-four hours to receive colostrum naturally, or were fed colostrum artificially where required.

After the first day, lambs were placed in a training pen and fed warm Lamlac ad-libitum through an Ewe-2 feeder. The milk replacer was mixed at a rate of 200g powder to 800ml of water.

From day eight, lambs were moved to a larger pen where Lamlac was mixed and delivered cold at 10°C using two Ewe-2 feeders.

Fresh creep feed and straw were introduced from day seven to support rumen development and help minimise digestive upset around weaning.

Weaning targets met

Lambs were weaned abruptly at 35 days of age. The target was a minimum bodyweight of 10kg and a daily intake of 250g of solid feed.

Dr Cooke said the findings demonstrate the flexibility available to producers.

“After following recommended rearing practices during the first week of life, feeding lambs cold ad-lib milk offers a straightforward, practical and highly cost-effective method of rearing surplus offspring, particularly where warm water or additional labour are limited.

“However, it is vital that producers use a high-quality milk replacer to ensure good mixing quality and avoid potential problems.”

The trial results suggest cold milk feeding can provide an effective and labour-saving alternative for sheep farmers seeking consistent growth performance in surplus lambs.

Cardiff under pressure from industry and environmental groups as new restrictions loom

THE WELSH GOVERNMENT has confirmed that further bans on single-use plastic products will not be enacted before the end of the current Senedd term — but reiterated its commitment to phasing out what it calls “unnecessary” plastics to protect the environment.

In a written statement on Wednesday (Feb 11), Deputy First Minister and Cabinet Secretary for Climate Change and Rural Affairs Huw Irranca-Davies said planned “Phase 2” restrictions under the Environmental Protection (Single-use Plastic Products) (Wales) Act 2023 will be delayed as officials work with UK governments to secure an exemption from the United Kingdom Internal Market Act 2020 (UKIMA). 

Phase 1 of the act, which came into force in October 2023, already bans a range of commonly littered items such as plastic cutlery, drinks stirrers, polystyrene cups and takeaway containers. 

Under Phase 2, ministers had intended to restrict polystyrene lids, single-use plastic carrier bags and products made of oxo-degradable plastic by spring 2026 — but Mr Irranca-Davies said that timetable is no longer feasible this term due to the ongoing negotiations over internal market arrangements. 

“We are committed to seeing polystyrene lids … plastic single-use carrier bags or products made of oxo-degradable plastic banned and are working to achieve that as soon as possible,” he said in the statement. 

Environmental groups and campaigners have welcomed the Government’s overall ambition but stressed the urgency of moving from pledges to action.

A spokesperson for Keep Wales Tidy said the original legislation was a crucial step in tackling plastic waste, noting that plastics remain one of the most common forms of litter found on beaches and in waterways. “This move shows intent, but communities are looking for swift implementation,” the group added in a recent comment on social media about Wales’s ongoing efforts to reduce single-use plastics. 

Wales was one of the first parts of the UK to target carrier bags, introducing a 5p charge for single-use plastic bags in 2011, which saw usage drop dramatically — by over 90 per cent according to government data. 

Critics from parts of the business community, including hospitality and retail sectors, have previously expressed concerns over the practical impacts of rapidly changing plastic regulations, particularly where alternatives are not readily available or where internal market uncertainties create compliance challenges for firms operating across the UK.

Mr Irranca-Davies said the Welsh Government remains committed to the wider goals of its Beyond Recycling circular economy strategy — including a **zero-waste **ambition by 2050 — and to ending what he described as a “throw-away culture” that harms the environment and future generations. 

He also highlighted progress already made: Wales now ranks among the world’s highest for household recycling rates, a significant rise from less than five per cent at the point of devolution. 

The Government says wet wipes containing plastic will be restricted from 18 December 2026 and that it will continue working with UK partners to resolve internal market issues and push remaining bans forward.