Paul Slevin, President of Chambers Wales South East, South West and Mid, said:

“It is welcome news that GDP growth performed better than expected in May at 0.5%, against the backdrop of the cost-of-living crisis and other critical challenges. However, we must be mindful that economic growth remains volatile, not least because of factors such as inflation, fuel and energy prices which are causing further uncertainty for businesses in Wales.

“Results from our recent quarterly economic survey show that cashflow and investment have remained constant or decreased for most SMEs, while almost two thirds of businesses expect to raise the prices of their products and services due to cost pressures.

“We need to listen and focus on the concerns of businesses to continue the upward trajectory of growth, whether that is financial assistance and tax changes or, as reported to us by businesses in Wales, access to new markets beyond the EU and innovation.”