Wales' private sector sees a strong return to growth

THE Welsh private sector has seen a strong uptick in output in a year, new research from NatWest shows.

- SION BARRY

Its Wales business activity index - a seasonally adjusted index that measures the month-on-month change in the combined output of the manufacturing and service sectors - rose to 51.5 in May from 48.1 in April. Anything above 50 denotes growth.

Meanwhile, demand conditions remained subdued as new orders declined for the sixth month running. Lower new business dampened output expectations for the year ahead, which were at their lowest for two and a half years.

However, underlying data revealed that the rise in Welsh private-sector activity was confined to the manufacturing sector, where goods producers noted that growth in new orders underscored the latest uptick. However, encouragingly, service providers recorded a softer rate of activity contraction.