The ONS has published the latest monthly and quarterly GDP data.

Paul Butterworth, CEO at Chambers Wales South East, South West and Mid, said:

“Although there was no monthly growth in June, it is positive that the data for Q2 shows growth of 0.6% in Q2 and has increased by 0.9% compared to the same quarter a year ago. This demonstrates that the economy is continuing to improve and build on its strong start to the year.

“Combined with low inflation and the recent interest rates cut, this positive news could further boost business confidence in Wales. In Q2 of 2024, our Quarterly Economic Survey showed small rises in the number of businesses in Wales who increased investment plans for training, equipment, plant and machinery. Ongoing steady increases in growth will allow firms to plan purposely and invest in the long-term with less hesitancy.”

Stuart Morrison, Research Manager at the British Chambers of Commerce, said:

“The UK economy got off to a good start this year, and the provisional data for Q2 shows that positive story is continuing. It’s clear that a strong performance in the services sector powered growth in the quarter.

“Our research shows business confidence has improved in recent months and last year’s shallow recession appears fully in the rear-view mirror. However, without a boost in both business investment and export levels, future growth is likely to be restricted.

Our latest economic survey shows the majority of firms (75%) are still struggling to boost investment. This month’s interest rate cut should give companies some welcome breathing space, but further stimulus is needed. For example, an industrial strategy that gives businesses greater certainty on the direction of travel and places green innovation at its core.

“For many of our Chamber members who export, the picture remains challenging. The new government has made a good start but more needs to be done to improve the trading outlook, particularly with our closest neighbour the European Union.”