Health of SMEs in Wales improves in April-June

THE health of SMEs in Wales improved in the second quarter of 2018, according to latest research by CYBG, in partnership with economic consultancy the Centre for Business and Economics Research (Cebr).

The report has revealed that the SME Health Check Index in Wales has shown one of the largest improvements in Q2, with the score increasing by nine points to 59. Business confidence soared to the highest level since data collection began in 2014 and the share of SMEs operating below capacity fell substantially. The annual rate of employment growth accelerated in Wales to 2.2%, with more than 13,000 jobs added over the second quarter.

The SME Health Check Index is designed to measure SME business performance and the business and macroeconomic environment within which SMEs operate.

At a UK level, the report highlights that the health of UK SMEs was stable for the second quarter of 2018, but at 47.1 points, the index is at its secondlowest level in four years.

Key data shows the economy did regain some momentum in Q2.

Following the disruption caused by adverse weather at the start of the year, activity was pushed into the second quarter. Despite the improvement in the GDP and capacity indicators, there was no material increase to the index score due to the slowdown in employment growth and fall in lending.