Growth in private sector output slows despite upturn in sales

WELSH businesses saw a further rise in output during June, according to the latest data from NatWest, but growth in activity slowed despite a sharper upturn in new sales.

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At 50.5 in June, the headline Wales business activity index a seasonally adjusted index that measures the month-on-month change in the combined output fell from 51.5 in May, to signal only a slight expansion in output at Welsh private sector firms. Anything below 50 denotes contraction.

Meanwhile, the rate of increase in new orders accelerated to the sharpest in over two years. Despite more favourable demand conditions, firms were less confident in the outlook for output over the coming year and registered another strong fall in employment.

On the price front, input costs and output charges increased at softer rates in June. Although still historically elevated, output prices rose at the weakest pace since October 2024.