Businesses in Wales have shown they are going from strength to strength, after their activity growth has achieved a six-month high.
NatWest Wales Business Activity Index, which measures the combined output of the manufacturing and service sectors – revealed it registered 52.6 in January. This is an increase from 49.3 in December and represents the fastest rate of growth since July 2019.
The results showed private sector firms had a rise in output once more, as well as new businesses.
This led to employment growth and business confidence, with optimism rising to the highest level since April 2014, South Wales Argus revealed.
NatWest Wales Regional Board’s Kevin Morgan stated: “The beginning of the new year saw a return to business activity growth across the Welsh private sector, with new business also rebounding.”
He added that greater client demand meant they started hiring more, while their confidence also increased as a result of a rise in sales and marketing initiatives.
However, Mr Morgan also noted that input costs rose for the second consecutive month, which meant there was still pressure on margins in January.
Despite this, the pace of charge inflection “was below the historical trend as firms struggled to pass on higher costs to clients”.
This news comes after the European Union revealed it is investing £1.25 million in Welsh businesses to create more training opportunities in highly-skilled jobs.
The money will go towards accredited training schemes, which will run until 2022, and will be an extension of the Materials and Manufacturing Education Training and Learning (METaL) project.
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