Chambers Wales comments on Q3 QES Results

Paul Slevin, President of Chambers Wales, said:

“For the third quarter, our data indicates a modest growth in economic activity, as the boost from the end of lockdown restrictions was hindered by supply and staff shortages as well as rising cost pressures.

“Almost 84% of Welsh businesses found difficulty recruiting staff in the last quarter, with workforce shortages causing concern in key service sectors. Recruiting skilled manual and technical roles in particular has been a struggle for around 62% of businesses.

“The results point to an underwhelming three months for Welsh businesses, with over half currently operating below capacity due to a lack of orders and rising raw material costs having an increasingly negative effect. Supply shortages alongside this drove an historic surge in inflationary pressures in the third quarter, with 54% of businesses finding inflation more of a concern now than previously.

“Though the Welsh economy remains on track for moderate growth this quarter, staff and supply shortages are increasingly limiting economic activity, and the impact of Brexit is being felt.

“Chambers Wales supports businesses to overcome some of these challenges, helping them upskill their workforce and appeal to skilled workers by providing training opportunities and trusted resources as well as knowledge transfer partnerships through their expansive network of Partners.”