Business
Slower contractions in Welsh business activity and orders in December
WEAKER declines in output and new orders Firms remain optimistic for 2025 Employment falls at fastest rate since September 2020
The latest Cymru Growth Tracker from NatWest highlights a slower pace of decline in business activity and new orders for Welsh companies in December 2024.
The Wales Business Activity Index, which measures month-on-month changes in output across the manufacturing and service sectors, rose to 48.9 in December from 47.7 in November. While still below the 50.0 threshold that indicates growth, the latest reading signaled the slowest contraction in the current four-month downturn.
The softer decline in output was underpinned by only a slight fall in new orders. Welsh firms expressed optimism for increased activity in the year ahead, although concerns over economic uncertainty, rising costs, and selling prices tempered expectations.
Employment and Cost Pressures
Despite improved business activity, subdued demand, spare capacity, and heightened cost pressures led to the sharpest drop in employment since September 2020. Redundancies were driven by cost-cutting initiatives and lower sales, with voluntary leavers not being replaced.
Although firms managed to increase selling prices at the fastest rate since May 2024, business confidence slipped to a 13-month low.
Jessica Shipman, Chair of the NatWest Cymru Regional Board, commented:
“Welsh businesses saw a slightly brighter end to 2024 as contractions in output and new orders eased. Success in engaging new customers helped slow the decline in new business, and firms are cautiously optimistic about 2025. However, the pace of job cuts accelerated, and rising costs—particularly wages—pose ongoing challenges to margins.”
Comparing Wales to the UK
The performance of Welsh businesses contrasted with modest growth across the UK. While Wales recorded slower declines, the pace of contraction in business activity remained more pronounced than the UK average.
New orders also fell for a second consecutive month in December, though the decline was among the weakest of the ten UK regions experiencing downturns. Optimism among Welsh firms about future output fell to its lowest level since November 2023, lagging behind both the UK average and historical trends.
Inflation and Pricing Trends
Input costs at Welsh firms rose at their fastest pace since April 2024, driven by higher supplier prices, rents, and wage bills. The rate of cost inflation was slightly below the UK average, but the pressure remained historically high.
In response, businesses raised selling prices at the quickest rate since May 2024. Despite this, Wales saw one of the slower increases in charges among the 12 UK regions, with only Yorkshire & Humber, Northern Ireland, and the West Midlands recording weaker upticks.
Employment and Backlogs
Welsh private sector firms reported the steepest job cuts of all UK regions, with staffing levels falling at the fastest rate since September 2020. Similarly, incomplete work declined at the quickest pace among the monitored UK areas, reflecting subdued demand and increased spare capacity.
Business
Battery storage system by Pembroke Power Station approved
A SCHEME for a battery storage facility near Pembroke Power Station which will put the county at “the forefront of South Wales’ low-carbon future” has been approved by county planners.
In an application recommended for conditional approval the January meeting of Pembrokeshire County council’s planning committee, RWE Generation UK plc sought permission for a Battery Energy Storage System (BESS) of up to 212 battery units including ancillary works, along with a connection to the National Grid on land next to Pembroke Power Station, Pwllcrochan, Pembroke.
An officer report for planners said: “The application site comprises an area of approximately 32 hectares of primarily agricultural land within the countryside, to the south of Pembroke Power Station.
“As well as the main part of the application site that would accommodate the BESS, the application site also includes a linear cable route to connect the BESS to the National Grid substation located adjacent to Pembroke Power Station, temporary construction laydown areas and a new means of access from the main power station access road to the west.”
Members heard that extensive mitigation was planned for visual impacts related to the proposal.
Speaking at the meeting, project manager Victoria Williamson said RWE wanted the Pembrokeshire site to be “at the forefront of South Wales’ low-carbon future,” the battery facility providing storage of excess electrical energy from the ‘grid, contributing to a consistent energy framework by storing energy at peaks and making it available for periods of higher demand.
Members heard local town and community councils had been liaised with, and local households had been informed of the scheme, with “overwhelming support for the proposal”.
Following a request for information from Cllr Alan Dennison, members were told that, if approved, it was hoped the scheme would start at the end of 2025, and be operational by early 2028.
Moving approval, Cllr Brian Hall said: “If we don’t go down this line, to be honest I don’t think the power station will stay there; it’s essential to go down this green energy, with the extra staff and benefits to the Pembrokeshire economy I think it’s marvellous, I have no hesitation whatsoever to move this recommendation.”
The recommendation for conditional delegated approval from the council’s head of planning, once a draft Habitat Regulations Assessment had been ratified, was unanimously passed by committee members.
Business
Residents meet with local politicians over A477 road safety concerns
MEMBERS of the Eglwyscummin Community Council and residents of the village of Red Roses today (Friday 17th January) called a road-side meeting with local politicians Samuel Kurtz MS, Cefin Campbell MS and Ann Davies MP to highlight what they consider to be an ‘unsafe’ junction.
Growing concerns about the safety of the Red Roses junction brought about by the increase in near misses and accidents from users of the junction was evidenced during the meeting. The community hope that continued pressured on Welsh Government will deliver the additional safety modifications needed to reduce the number of incidents happening at the junction.
The local Member of Senedd for Carmerthen West and South Pembrokeshire, Samuel Kurtz, has been leading the campaign with the Community Council and has been liaising with SWTRA and Welsh Government Ministers to call for action on this junction.
He has already delivered a successful campaign to change the road layout of the notorious A477 Nash Fingerpost junction following several serious accidents, which is already being of real benefit to the local community. He hopes to build on this success by continuing to fight for further improvements in Red Roses and address the speeding issues being experienced on the A477 through the village of Milton.
Following the community meeting, Samuel Kurtz MS commented: “The Community Council have been extremely active in sharing the experiences that drivers are having at this junction and have put forward some recommendations that they believe will make it safer. Sadly, it’s a typical case of the junction meeting all the criteria on paper, but in practice, it’s dangerous and needs addressing.”
“ In this case, traffic travelling Westward towards Pembroke at speed have no turn off lane before having to slow down to virtually a standstill to make the narrow sharp lefthand turn off the A477 to Red Roses. On this fast busy road, it has been the root cause of the sign being crashed into on several occasions as drivers have failed to make the turn. There are crashes or near misses, as cars break sharply to try to make the turn as safely as possible.”
He added: “I believe that there are some relatively straight forward steps that can be taken which will deliver improvement and I’ve been asking Welsh Government for a review of the A477 and will invite road officials to see for themselves the junction in use. But I do need feedback from the local community to help make the case to Welsh Government. I’m asking people to get in touch with me via my Facebook page or email to share their experience, opinion, or example of any issues they may have had or witnessed using this stretch of road.”
Pictured above: Members of the Eglwyscummin Community Council at the road-side meeting with local politicians Samuel Kurtz MS, Cefin Campbell MS and Ann Davies MP discussing safety concerns at the Red Roses junction.
Business
Haverfordwest Farmers Market: Local producers and fresh produce
AS County Councillor for Castle Ward, Thomas Tudor expressed his delight after visiting the Haverfordwest Farmers Market. Held in Castle Square, the market showcases a variety of high-quality local produce, offering a vibrant community shopping experience.
Fresh produce every Friday
The Haverfordwest Farmers Market takes place every Friday from 9:00am to 2:00pm in the heart of Pembrokeshire’s bustling county town. Visitors can explore a wide range of stalls offering fresh produce, meats, crafts, and organic goods directly from local farmers, growers, and artisans.
Market Manager Joanne Welch explained: “Customers enjoy a memorable shopping experience in a vibrant, friendly atmosphere, have confidence in the producers, their products, and can always rely on the high-quality produce available at every market.”
Why shop local?
The market serves as a hub for supporting local businesses and reducing food miles. “Buying local makes sense,” Joanne continued. “Not only does it benefit the local economy, but it guarantees the freshest produce that is great value for money—and tastes fantastic too!”
What you need to know
- Purpose: Farmers markets provide a unique opportunity to connect with local producers while enjoying fresh, quality food. Supporting these markets ensures a sustainable future for local farmers and reduces the environmental impact of long food supply chains.
- Hygiene standards: Stallholders adhere to the same strict hygiene regulations as other food retailers, ensuring safety and quality for customers.
- Cost: While prices may not always be cheaper, the quality and freshness of the products offer excellent value for money.
For those looking to enjoy a unique shopping experience, Castle Square in Haverfordwest is the place to be every Friday. Explore the best of Pembrokeshire’s local produce and craft while supporting your community.
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