KPMG has published its half year private enteprise barometer
Just over three-fifths of private business owners in Wales are confident of delivering growth in the second half of this year according to professional advisory firm KPMG.
At the start of the year, KPMG’s annual private enterprise barometer showed that 89% of private firms in Wales expressed confidence in their growth prospects over the next year. However, at the half year point that had fallen to 61%.
Six months on, following a challenging period for the UK and global economy amid instability in global energy markets, persistent inflation and trade
For the UK as a whole confidence has fallen 87% to 80%.
Despite this, technology remains a leading investment priority for Wales-based businesses, with 55% identifying areas such as artificial intelligence (AI), cyber security and broader digital transformation as key focuses.
Diversification also remains firmly on the agenda, with 54% of businesses across the region looking to expand their service offerings and broaden their client base. This represents a small decrease from 57% at the start of 2026 and is down nine percentage points against the current national average.
Of businesses considering how to fund their growth plans, appetite for private equity investment is more subdued compared to the beginning of the year, with two-fifths (40%) of respondents identifying private equity as a way to fund their growth ambitions – down five points on the UK average (45%) and seven percentage points below the 47% recorded five months ago.
Instead, almost half (49%) of businesses are turning to their own balance sheets to help fund their growth plans, reflecting a growing preference to retain control and rely on internal resources amid ongoing economic uncertainty.
Amid a dip in confidence, businesses remain alert to the challenges ahead. Almost half (48%) of businesses in Wales identified inflation and ongoing cost pressures as the two biggest short-term risks facing their organisations. At the same time, firms are looking to policymakers to help strengthen long-term resilience.
When asked about the autumn Budget, more than two fifths (43%) of Welsh firms would like to see growth-focused investment and the industrial strategy prioritised by the incoming Chancellor.
David Williams, Wales and south west of England office senior partner at KPMG UK, said: “This dip in Welsh business confidence during the first half of 2026 reflects a combination of persistent cost pressures, global uncertainty and political change closer to home. However, the headline figure doesn’t tell the whole story, and there remain clear signs of ambition among Welsh businesses.
“The Senedd election in May marked a significant change in Wales’s political landscape. A period of transition can naturally lead some businesses to pause while they wait for greater clarity around future priorities. Certainty and consistency, as the new administration’s plans take shape, should help businesses plan and invest with more confidence.
“Encouragingly, appetite for technology investment has encouragingly, appetite for technology investment has increased since the beginning of the year. This reflects both the strength of Wales’s technology ecosystem and the determination of Welsh businesses to use innovation to improve productivity and pursue growth.”





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