South Wales & borders business confidence falls by 35%

1.30.00pm GMT Wed 13th Aug 2008

Business confidence in South Wales and the Welsh borders has fallen by 35% since January according to the Lloyds TSB Business survey.

The region has a confidence rating of -10%, which is 2% below the national average and compares to the +25% that it was in January.

Kirsty Williams AM, Welsh Liberal Democrat spokesperson for Economy, said:

"These figures show a worrying lack of confidence throughout our business sector and it is essential that their apprehension is addressed in order to maintain a buoyant economic and entrepreneurial climate.

"The report indicates "slow growth rather than recession" and so it is essential that the One Wales Government supports our smaller businesses and invests in improved infrastructure and skilling the population to make Wales a place to do business.

"We must be very careful to get the balance right between addressing valid financial concerns and not talking ourselves into greater economic difficulty and it is the role of a strong Government to lead the country in promoting a positive and confident economic climate.

The survey found that weaker consumer demand and rising energy and input prices were the greatest threat to businesses and not the so called 'credit crunch'.

Kirsty commented: "It is essential that the WAG does all it can to ensure a climate of confidence to prevent a further downwards spiral. The WAG must move towards reducing high energy costs by shifting the Welsh economy away from its dependence on oil and towards more sustainable and renewable alternatives which will also stimulate growth and employment in those sectors."