Business optimism at seven-month high in Wales

OUTPUT expectations improved to a seven-month high for Welsh businesses despite a decline in business activity in September, according to the latest Cymru Growth Tracker data from NatWest.

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At 45.5, the headline Wales 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 - was down from 50.4 in August and indicated a faster fall in output levels.

Companies reported that the pace of cost inflation eased over September whilst greater competition led to a slower rise in selling prices.

And despite subdued demand, business confidence ticked up to the highest since February.

Jessica Shipman, chair of the NatWest Cymru Regional Board, said: "Welsh businesses recorded more upbeat expectations for output at the end to the third quarter, despite activity and new orders falling. That said, a degree of client hesitancy and weak demand in key markets and sectors weighed on new sales.