Business confidence in Wales rose by 38 points to 54% in October, according to the latest Business Barometer from Lloyds.
The figure compares with 16% in September 2026 and puts confidence in Wales above its 12-month average of 37%. It matches the joint-high for the year of 54% recorded in August.
Firms in Wales reported optimism in their own trading outlook of 58%, up 36 points, while optimism in the economy rose 42 points to 51%.
Stronger customer or market demand (58%), improving interest rates or financial conditions (38%) and industry-specific improvements (36%) were cited as the drivers of economic optimism among Welsh firms.
A net balance of 42% of businesses in Wales expect to increase staff levels over the next year, up 12 points on the previous month.
Over the next six months, businesses in Wales identified introducing new technology such as AI or automation (43%), investing in their team, for example through training (37%), and entering new markets (34%) as their top target areas for growth.
Nathan Morgan, Area Director for Wales at Lloyds, said: “It’s fantastic to see such a strong rebound in confidence among Welsh businesses this month, with economic optimism now outpacing the UK average. Stronger customer demand is clearly helping to lift sentiment, while the rise in hiring intentions suggests firms are confident about their outlook for growth.”
Across the UK, overall business confidence rose six points to 47% in October, following September’s reading of 41% and sitting above the long-term average of 30%.
UK optimism in the wider economy rose nine points to 40%, while businesses’ own trading outlook increased five points to 55%. Nearly two thirds of firms (63%) expect an increase in activity over the year ahead.
Fiamma Morton, Managing Director, SME Banking at Lloyds, said: “There are careful choices to make. Cost pressures haven’t gone away, so investment needs to work hard. But the ambition is absolutely there. Businesses are continuing to find ways to grow, adapt and make their next move.”
The Business Barometer surveys 1,200 businesses each month and has been running since 2002. This survey was conducted with 1,200 companies, including 57 businesses in Wales, between 2nd and 15th October 2026.
