New company registrations in Wales fell in the second quarter of 2026, suggesting business confidence remains subdued despite a reduction in insolvency-related activity, according to an R3 report.
R3’s latest Quarterly Business Health report, based on data from Creditsafe, found that 4,922 new companies were registered in Wales during Q2 2026, a 15% decrease on the same period last year (5,796) and an 8% fall compared to the previous quarter (5,330).
While fewer new businesses were launched, the number of Welsh companies entering insolvency-related processes also declined.
There were 191 insolvency-related activities in Q2 2026, 22% lower than the same period last year (245 cases) and 10% lower than the previous quarter (212).
More recent figures suggest business pressures have continued, with Insolvency Service statistics showing company insolvencies in England and Wales increased by 5% in July, compared to the previous month, rising to 1,931 cases.
Bethan Evans, Chair of R3 in Wales, commented:
‘R3’s latest Business Health report suggests that while business distress has eased across Wales, many entrepreneurs and business owners are continuing to take a cautious approach to growth and investment.
‘The reduction in insolvency-related activity is encouraging and reflects the resilience shown by many Welsh businesses. However, the significant fall in new company registrations suggests that economic uncertainty continues to influence decisions around starting a new venture.
‘Businesses are still facing a range of pressures, including increased operating costs, ongoing economic uncertainty and changing consumer demand. These challenges can affect confidence and make it harder for firms to plan and invest for the future.
‘As conditions remain challenging, business owners should monitor their cashflow and financial position carefully and seek professional advice at the earliest signs of difficulty. Speaking to a qualified restructuring or insolvency professional early can help identify more options and improve outcomes.’
The latest figures mirror the national picture, with new UK company registrations falling by 6% year-on-year to 184,873 in Q2 2026 and by 2% compared to the previous quarter. Insolvency-related activity has also declined nationally by 6% compared with Q2 2025, falling to 6,854 cases.
