Business confidence in Wales rose more than any other nation or region in the UK during November, rising 14 points to 37 per cent , according to the latest Business Barometer from Lloyds Bank Commercial Banking.

Companies in Wales reported higher confidence in their own business prospects month-on-month, up 17 points at 44 per cent.

When taken alongside their optimism in the economy, up nine points to 30 per cent, this gives a headline confidence reading of 37 per cent.

The Business Barometer, which questions 1,200 businesses monthly, provides early signals about UK economic trends both regionally and nationwide. 

A new balance of 37 per cent of businesses in the region expect to increase staff levels over the next year, up 21 points on last month.  

Over all, UK business confidence was buoyant in November at 40 per cent, down just three points on October’s reading of 43 per cent.

Both firms’ confidence in their own trading prospects and optimism in the economy remained comfortably in positive territory, each dipping just three points month-on-month to 39 per cent and 41 per cent respectively.

All UK nations and regions had positive confidence readings in November, with two other regions – the East of England and South East – reporting an increase on October’s data.

Firms in London (down two points to 63 per cent) remained the most confidence for third month in a row, followed by the North East (down 16 points to 45 per cent), the West Midlands (down eight points to 42 per cent) and East Midlands (down 13 points to 42 per cent). A net balance of 30 per cent of firms across the UK reported plans to create new jobs in the next twelve months, with hiring intentions strongest in London (41 per cent), Wales (37 per cent) and the South West (37 per cent).

Amanda Dorel, regional director for Wales at Lloyds Bank Commercial Banking, said: “It’s fantastic to see business confidence in Wales return so emphatically this month. It's clear firms are looking to the future with more optimism and have set their sights on growth after a turbulent period.

“It’s great to see too that so many firms are planning to create new jobs in the next year, which will be a massive boost to the Welsh economy as we continue to build back from the impacts of the pandemic. We will be by the side of businesses across the country to help them as they do so.”

At a sector level, confidence slipped in manufacturing (42 per cent), to its lowest since August, linked to the persistence of supply-chain disruptions, while it fell to a seven-month low of 28 per cent in construction.

In contrast, the retail sector (45 per cent) bucked the trend with a pickup in confidence, reflecting hopes for higher spending ahead as the festive period approaches. Services confidence (41 per cent) fell slightly, with strong growth for financial and business services and communications offset by more downbeat responses from education, health and public administration.