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Business activity growth in Wales accelerates to fastest in over a year

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The headline NatWest Wales PMI Business Activity Index – a seasonally adjusted index that measures the month-on-month change in the combined output of the region’s manufacturing and service sectors – posted at 52.0 in May, up from 50.8 in April, to signal the sharpest rise in output at Welsh private sector firms since March 2023. Although slower than the series average, the latest increase in activity was supported by a further improvement in demand conditions and a sustained uptick in new orders. The expansion was among the weakest seen of the 12 monitored UK regions and nations, however, with only Yorkshire & Humber, the South East and East of England recording softer growth in output.

Private sector firms in Wales signalled a third successive monthly expansion in new orders midway through the second quarter. Panellists noted that demand conditions were sustained, alongside new client wins. The rate of growth eased, however, to the slowest in the aforementioned sequence and was only marginal overall. Meanwhile, the pace of increase in new business was weaker than the UK average.

Welsh businesses registered further optimism regarding the outlook for output over the coming 12 months in May. The degree of confidence ticked up to a three-month high, but was also among the strongest in two-and-a-half years. Anecdotal evidence attributed positive sentiment to hopes of more upbeat demand conditions and efforts to broaden customer bases.

Expectations were historically elevated and more optimistic than that seen at the UK level.

May data signalled a third successive monthly increase in employment at Welsh private sector firms. The rate of job creation accelerated to a modest pace that was the fastest since October 2022. Companies stated that greater staffing numbers were due to increased new order intakes.

The rate of expansion in headcounts was historically upbeat and outpaced the UK average.

As has been the case since May 2022, Welsh firms registered another monthly decrease in unfinished business midway through the second quarter. The pace of decline accelerated to the fastest in three months and was sharp overall. Companies noted that an improvement in supply chains and sufficient capacity allowed them to work through incomplete orders in a timely manner.

Moreover, Welsh firms by far saw the quickest decrease in backlogs of work of the 12 monitored UK regions and nations.

Welsh private sector firms signalled a marked rise in input prices during May. Panellists often stated that greater cost burdens stemmed from increased raw material and fuel prices, alongside higher wage bills. The pace of cost inflation softened from April’s recent high and was broadly in line with the long-run series average.

Meanwhile, Welsh firms indicated a sharper uptick in costs than was seen at the UK level.

Selling prices set by Welsh private sector firms continued to increase at a historically elevated pace in May. Anecdotal evidence suggested that firms sought to pass-through higher costs to customers. The pace of inflation eased to the slowest in four months, however, and was broadly in line with the UK average.

 

Business

Planners reject farm’s sheep milk gin distillery expansion

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A CALL to keep a building which would partly be used a distillery at a Pembrokeshire farm which produces award-winning sheep milk-infused gin has been turned down by county planners.

In an application to Pembrokeshire County Council, Steven and Julie Ayers of Fifth Flock Spirits Ltd through agent Johnston Planning Ltd sought permission for the retention of a replacement building for farm diversification purposes incorporating a gin distillery with associated function/tasting room, reception area for farm businesses, including the distillery, a kennels and caravan site, along with offices and associated storage facilities at Nash Mountain Farm, Sardis.

Two previous similar 2024 and 2025 applications have been refused, the latest scheme removing some previous elements.

A supporting statement said the building would be used for farm diversification purposes for a number of established rural enterprises on the holding “but primarily in connection with Fifth Flock Spirits Ltd, a family run drinks company specializing in gin infused with milk derived from the resident flock at Nash Mountain”.

It said the 2023-erected building had replaced an earlier long-standing dilapidated farm building on the site, and is intended to play host to the three established farm enterprises which are run in conjunction with the main agricultural operation: Nash Mountain Kennels, Nash Mountain Caravan and Camping Site and primarily Fifth Flock Ltd.

It said internal works had yet to be completed, and, in addition to the retention of the building, the application also seeks permission for some external works which have not yet been carried out.

The statement said the Ayers family has farmed at 26ha Nash Mountain, which has a flock of 168 East Friesian sheep, for some five generations, the limited acreage meaning “the agricultural mainstay is not sufficient to sustain a viable business,” leading to the farm diversifications, with Fifth Flock the latest.

It said, in addition to the main farming operation, Nash Mountain also gains income from an on-site wind turbine, a caravan site, a boarding kennels with cattery, and Fifth Flock Ltd.

On the gin side, the statement says: “Fifth Flock Spirits Ltd Fifth Flock has operated from Nash Mountain since August 2025. It is at core currently a drinks enterprise based on the production of gin and rum infused with sheep’s milk, however, as set out in the accompanying business plan, the intention is to expand the offer into other sheep-based products to capitalise on the home flock.

“Since launching the enterprise has exceeded expectations with strong demand and accolades including A Taste of Pembrokeshire Award at the Pembrokeshire Food and Farming Awards in December 2025.

“Firth Flock currently source their gin from an independent distillery in Gorgeddan, Ceredigion however the intention, as reflected in this submission, is to develop the distilling element on-site and include it as part of an immersive visitor experience focussing on the home flock.

“Firth Flock has rapidly become a cornerstone of the enterprise at Nash Mountain and whilst the building at the centre of this proposal may have been premature there is a strong case for its retention as part of the overall rural enterprise on the holding.”

It adds that the Ayers are actively exploring diversification into other wool and sheep-based products.

The application was refused on the grounds including it was not demonstrated a countyside location was needed and there was not “sufficient evidence of a genuine and established rural enterprise necessitating the development,” adding: “In particular, the primary distilling process does not currently take place at the site and instead relies on off-site production, with only a future aspiration to relocate such activities.

“As a result, the proposal represents a speculative form of development that lacks a clear and direct functional link to the agricultural holding.”

It went on to say the scale of the proposals “introduces a level of intensity and built form more akin to a standalone commercial or tourism enterprise, rather than a modest farm diversification scheme”.

 

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Business

Plans for Ireland-UK fibreoptic cables to be connected at Pembrokeshire

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PLANS by a Vodafone phone company subsidiary to bring fibreoptic cables across the sea from Ireland to a Pembrokeshire seaside beach village in order to improve broadband coverage have been lodged.

In an application to Pembrokeshire Coast National Park, Apollo Submarine Cable Systems limited, through agent APEM Group, seeks permission for the construction of four underground telecom chambers and interconnecting ducts, along with Horizontal Directional Drilling (HDD) underneath Brandy Brook, Newgale, and the construction of one HDD bore-to-sea outfall.

A supporting statement accompanying the application says the scheme would form the onshore part of a project to bring a fibreoptic cable onshore from Kilmore Quay, Wexford, Ireland to a site at Newsurf Shop car park, Sands Café Car Park and Duke of Edinburgh Inn, Newgale.

It says the majority of the project is subterranean, with very minor above ground works are proposed, which comprise the installation of a manhole cover.

It adds: “To facilitate improved internet connectivity, the applicant is proposing the installation of a fibreoptic telecoms cable (the Beaufort cable) from Kilmore Quay, Wexford, Ireland to Newgale.

“The project is to facilitate the installation of the Beaufort cable, as it comes ashore in Wales and to link it into the wider network, which will be operated by Vodafone’s wholly-owned subsidiary Apollo Cable System Limited in the UK.”

It says the project would see three underground telecom chambers and a 120-metre interconnecting duct, the 87-metre HDD underneath Brandy Brook, launching from the receiver pit located within the Site, along with the construction of one HDD bore-to-sea outfall, in a subtidal area of Newgale bay, of approximately 920 metres, and one underground telecom chamber and interconnecting duct.

Citing a report on digital connectivity, it says 5G geographic coverage has seen improvements but is still relatively low at 57 per cent of Wales’ landmass, with 4G the primary service.

That report says there is a difference in full fibre coverage between urban and rural areas (83 per cent versus 59 per cent) and highlighting a need for further coverage.

On the scheme itself, the statement says short-term noise and disruption to local residents “is anticipated during the construction phase however this will be limited to 57 days,” adding: “The proposed drilling operations are not to be continuous and will be limited to approximately 20 minutes in each hour,” the works in total expected to last 91 days after which land will return to its former use without restrictions.

It goes on to say: “The HDD is specifically designed to mitigate the risk of any shoreward movement of the shingle bank and beach level changes. The use of HDD reduces the likelihood of potential environmental impact on the landscape and seascape.

“The project is not anticipated to interact with Brandy Brook. All drilling works will take place within excavated launch pits and all construction works will be confined to the hardstanding of the car park.”

The application will be considered by Park planners at a later date.

 

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Business

Call for Hildebrand to become short-term lets to reflect changing tourism environment

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A CALL to allow a Pembrokeshire seaside hotel to become short-term holiday let accommodation to ensure its long-term viability in a changing tourism sector has been submitted to the national park.

In an application to Pembrokeshire Coast National Park, Abergavenny-based Kyle Williams, seeks permission for a change of use of The Hildebrand Hotel, 29 Victoria Street, just off Tenby’s Esplanade seafront, from a traditional hotel to a short-term holiday letting operation.

A supporting statement accompanying the application says the scheme seeks to “secure the continued viable use of the property through its operation as professionally managed holiday accommodation, providing high-quality visitor accommodation within the established tourism destination of Tenby”.

It adds: “The Hildebrand Hotel is an established visitor accommodation property located within Tenby, Pembrokeshire, one of Wales’ premier coastal tourism destinations. The property has historically operated as hotel accommodation and occupies a sustainable location within walking distance of local services, beaches, restaurants, public transport facilities and tourism attractions.

“The building is well suited to visitor accommodation use and benefits from existing infrastructure, guest facilities and accommodation layouts that support continued tourism-related occupation.”

It says no significant external alterations are proposed, adding the “character, appearance and scale of the building will remain unchanged”.

“The accommodation will be let on a short-term basis to visitors and tourists, supporting the local visitor economy whilst ensuring the building remains occupied, maintained and economically viable.”

It adds: “The proposed use will ensure the continued occupation and maintenance of the building. The hospitality sector has experienced significant operational challenges in recent years, including staffing pressures, increasing energy costs and changing visitor preferences. The proposed use offers a flexible operational model capable of maintaining the long-term viability of the property.”

It concludes: “The proposal will retain the building within the tourism sector, support the local economy, preserve the ongoing use of an established visitor accommodation property and ensure the long-term viability of the site.

“No significant external alterations are proposed, and the development is not expected to result in unacceptable impacts upon neighbouring amenity, highway safety or the character of the area.”

The application will be considered by Park planners at a later date.

 

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