According to Chambers Wales’ latest quarterly economic survey, many see opportunities for expansion despite ongoing concerns about inflation, labour costs, and taxation.
More than half of companies surveyed (51 per cent) identified new markets as a potential avenue for growth over the next three months, with 42 per cent saying that they currently trade with countries inside and outside of the EU.
David Peña, director of international trade at Chambers Wales South East, South West and Mid, said: “The EU is a primary export market for Welsh goods and services.
“It appears that the UK-EU summit and reset deal earlier this year is giving businesses in Wales more confidence that the trading relationship between the two markets will improve and contribute to business growth.”
Mr Peña also stressed the importance of understanding regulatory requirements when trading with the EU, noting that Chambers Wales is offering support through training and partnerships.
A notable increase in investment was reported in Q3, with 37 per cent of businesses boosting spending on plant, machinery, technology, and equipment, up from 23 per cent in the previous quarter.
However, challenges remain.
Three-quarters of businesses said labour costs are pressuring them to raise prices, while 64 per cent cited taxation as their top external concern.
Gus Williams, CEO of Chambers Wales South East, South West and Mid, said: “Welsh businesses, though cautious, appear to be moving forward by identifying and investing in opportunities that will positively impact them.”
Inflation is also a growing worry, with 57 per cent saying it is a bigger issue now than three months ago.