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Welsh business confidence plummets in August

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BUSINESS confidence in Wales took a significant hit in August, dropping by 27 points to a mere 35%, according to the latest Business Barometer from Lloyds Bank Commercial Banking. This marks a sharp decline in sentiment among Welsh businesses compared to previous months.

The survey revealed that companies in Wales are feeling less optimistic about their own business prospects, with confidence falling by 19 points to 43%. This downturn in self-assurance is compounded by a stark drop in optimism about the broader economy, which plunged by 34 points to 28%. The combined effect of these factors has resulted in an overall confidence reading of 35%, a steep decline from July’s figure of 62%.

Looking towards the future, Welsh businesses have pinpointed key areas for potential growth over the next six months. Top priorities include evolving their offerings, such as launching new products or services (39%), adopting new technologies (39%), and investing in their workforce through training and development (36%).

The Business Barometer, which canvasses 1,200 businesses across the UK on a monthly basis, serves as an early indicator of economic trends both regionally and nationally.

Across the UK, overall business confidence remained steady in August, holding at 50%, the same level as in July. Confidence in the UK economy saw a slight improvement, inching up by two points to 47%. However, this was offset by a marginal decline in firms’ confidence in their own trading prospects, which dipped by two points to 54%. Despite this slight decrease, confidence levels remain above the long-term average.

The North East emerged as the most confident region in the UK, boasting a 65% confidence level, closely followed by Scotland at 64%.

Sector-specific data painted a mixed picture, with some industries experiencing gains while others saw declines. The construction sector experienced a robust increase in output expectations, rising by 14 points to 58%, reflecting strong growth prospects. Conversely, the manufacturing sector saw a slight decrease, with trading prospects dropping by two points to 58%, bringing it in line with the construction sector. Meanwhile, the Retail and Services sectors experienced declines, with confidence levels falling to 53%, down by 7 and 3 points respectively.

Sam Noble, Regional Director for Wales at Lloyds Bank Commercial Banking, commented: “Despite the recent dip in confidence, Welsh businesses remain determined to pursue growth. Whether it’s through launching new services or investing in their teams, these companies are actively seeking new opportunities. As they navigate these challenges, we are committed to supporting them with our insights, tools, and on-the-ground expertise.”

Hann-Ju Ho, Senior Economist at Lloyds Bank Commercial Banking, added: “August’s business confidence figures remain strong, with the overall UK confidence level staying at 50%, well above the long-term average of 29%. This sustained confidence, which has been above the average for the past 15 months, is supported by encouraging GDP data from the first half of the year. The survey results suggest that this solid economic performance is likely to continue into the second half of the year.

“However, there are some cautionary signs, such as the increase in wage growth expectations this month. Although this uptick has not reversed the downward trend seen so far in 2024, it is something to watch closely. Overall, the economy appears stable, and businesses are reflecting this sentiment in their outlook.”

Business

Ferry Terminal ‘extremely busy’ due to ongoing Holyhead closure

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PEMBROKE DOCK Ferry Terminal has been experiencing significant congestion today as ferry services remain under immense pressure following the closure of Holyhead Port earlier this month.

The disruption, caused by storm damage, has rerouted ferry traffic through Pembrokeshire, leading to long queues and crowded facilities at the terminal.

The Herald can confirm that it has been very busy today with cars, lorries, and foot passengers queuing in large numbers. Staff are working tirelessly to manage the influx, directing vehicles and assisting passengers as they prepare to board the heavily booked ferries.

A spokesperson for the Port of Milford Haven said: “We are working closely with ferry operators and local authorities to ensure traffic flows as smoothly as possible, but the sheer volume of vehicles is causing unavoidable delays.”

Travelers are being urged to arrive early for their sailings and to remain patient as the terminal operates at full capacity.

Both Stena Line and Irish Ferries have increased capacity on their Pembrokeshire routes, deploying larger vessels, including the Stena Adventurer and the MV James Joyce, to handle the surge in demand.

From our position at the terminal, our photographer has captured photos showing long lines of vehicles, groups of foot passengers carrying luggage, and port staff coordinating efforts to ease congestion.

Authorities are advising non-essential travelers to consider rescheduling their journeys where possible and to monitor updates from ferry operators closely.

(Photos: Martin Cavaney/Herald)

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52 homes to be built in Roch as scheme gets final sign-off

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THE FINAL stage of approval for a near-£10m Pembrokeshire residential development of 52 homes has been given the go-ahead.

Back in April, members of Pembrokeshire County Council’s planning committee backed an application by Wakefield Pembrokeshire Ltd for the development, which includes four one-bed affordable housing units, on land near Pilgrims Way, Roch.

18 objections to the scheme were received, raising concerns including an “inadequate” affordable housing level, it being a high density development for a rural area, a loss of green space, the size of some of the homes, and pressures on existing services and facilities, and fears it may lead to an increase in second homes.

Nolton & Roch Community Land Trust (N&RCLT) has raised its concerns about a lack of affordable homes at the development, calling for a 20 per cent affordable homes element, as recommended by policy.

An officer report for members, recommending conditional approval, said: “It is apparent that the proposed development is not fully policy compliant, insofar as it cannot deliver the indicative 20 per cent affordable housing sought [by policy].

“However, a substantial positive social impact will arise through the provision of housing, including four one-bed affordable housing units, in meeting identified needs for both market and affordable housing.

“Financial obligations identified to mitigate adverse impacts arising from the proposed development cannot be met in full. However, [policy] acknowledges that in such circumstances contributions may be prioritised on the basis of the individual circumstances of each case.”

Speaking at the meeting, agent Gethin Beynon said the project had a “significant economic value” of around £10m, and the local applicant had “a sense of stewardship to the local community,” offering affordable housing and community infrastructure towards highways and education.

Approval was delegated to the council’s head of planning to approve the application, subject to the completion of a Section 106 planning obligation, making community financial contributions.

The Section 106 agreement was recently agreed, with the application now formally approved.

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Business

World of engineering and welding SPARCs interest in Ysgol Harri Tudur’s female learners

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AN EVENT hosted by Ledwood Engineering gave girls from Year 8 and 9 at Ysgol Harri Tudur first-hand experience of the world of engineering recently. 

Engineering is a booming sector in Pembrokeshire with a high demand for skilled workers in exciting career pathways associated with the development of low carbon and renewable energy industry and the Celtic Freeport. 

The young women heard from industry experts on the importance of engineering in Pembrokeshire, and had hands on experience using a welding simulator, at the company’s Pembroke Dock site. 

The learners are part of the County’s SPARC (Sustainable Power and Renewable Construction) initiative aimed as inspiring and empowering young females to consider careers in science, technology, engineering and mathematics (STEM) pathways where females are under-represented in the workforce. 

SPARC is funded through an alliance comprising Blue Gem Wind, Ledwood Engineering, Port of Milford Haven, RWE Renewables, Pembrokeshire County Council, Pembrokeshire College and the Swansea Bay City Deal. 

Mrs Laura Buckingham, SPARC practitioner at Ysgol Harri Tudur said: “Our learners had a fantastic experience at Ledwood Engineering.  They were given lots of advice by industry experts on the different career options and pathways within the engineering sector.  

“They appreciated the opportunity to ask their questions and found the session very informative. Having the chance to trial their welding skills on the simulator was an experience they continue to talk about and has definitely piqued their interest.”

Poppy Sawyer, Year 8 SPARC learner added:  ‘It was a really good trip. Talking to the different people there has helped me know more about the jobs we could get which will be very useful when making choices for my future.”  

 “They helped us a lot by giving us lots of information. We were able to look around and try welding. It was really fun,” added Tianna Marshall, Year 8 SPARC learner.

The Regional Learning and Skills Partnership also launched its Explore Engineering interactive website at the event.

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