In June this year, private sector revenue grew more than it had in previous months, according to the published monthly report.
A score of 50 indicates that output has neither increased nor decreased – and this was the score the private sector in Wales generated in May. In June however, the score was 51.8, indicating a rise in growth.
Despite this, it seems there are other issues Welsh businesses will need to look at in order to minimise problems. The index showed that new orders have fallen this month, after falling in the previous two months too – and this applies to both the service and manufacturing industries. Many businesses have blamed the current poor housing market as the cause of their low order rates.
As for employment, figures stayed constant in June, with 86% of those involved in the survey stating staff levels have not changed much since the previous month.
On the brighter side on things, it seems that the effects of inflation on the cost of raw materials has improved, with there being signs that the rate of inflation is slowing down and may continue to do so in the coming months.
The manufacturing industry is worst affected by the costs of raw materials, a problem made worse by the weakness of the pound and general global prices of a lot of raw materials.
The director for Lloyds TSB Commercial in South and West Wales issued a statement saying high unemployment and inflation will mean Welsh businesses may struggle to keep up this growth in the immediate future.