The index is seasonally adjusted and measures the month-on-month change in the combined output of the region’s manufacturing and service sectors.

It registered 52.0 in December, up from 49.8 in November.

This data signalled a modest uptick in business activity across the Welsh private sector at the end of the year. The rise in output was the fastest since June, with companies linking the expansion to greater client demand and a renewed increase in new business.

Welsh firms were the best performing of the 12 monitored UK areas and bucked the wider UK trend, which indicated a marginal contraction in output.

Welsh private sector firms recorded a return to growth in new business at the end of 2022, thereby ending a four-month sequence of contraction. Welsh businesses bucked the UK trend, with the average across the UK as a whole signalling a modest decline in new orders. Firms often stated that increased new business was due to stronger client demand.

The rise in new orders was only marginal, however.

Output expectations for the year ahead at Welsh private sector firms strengthened for the second month running in December.

Confidence reportedly stemmed from hopes of a pick up in client demand and investment in new products. The level of optimism was lower than the series and UK averages, however. Firms noted that efforts to keep costs down amid inflation concerns harmed expectations.

December data signalled broadly unchanged levels of employment across the Welsh private sector, as the respective seasonally adjusted index posted fractionally above the 50.0 no change mark. A fall in manufacturing staffing numbers was offset by job creation in the service sector. The UK average indicated a marginal contraction in workforce numbers.

Welsh private sector firms registered a slower fall in the level of outstanding business at the end of the year. The rate of decline was only marginal and the softest since May. The decrease in backlogs of work was largely linked to greater stability in supply chains which allowed firms to process incoming new business. That said, increased new order inflows led to the slower contraction.

The fall in incomplete business was slower than the UK average.

December data signalled another historically elevated rate of cost inflation at Welsh private sector firms. Increased cost burdens were linked to higher energy and material prices. Nonetheless, the pace of inflation eased for the third month running to the slowest since April 2021. Service sector firms recorded sharper price rises than their manufacturing counterparts.

Welsh private sector firms indicated a slightly slower uptick in costs compared to the UK average.

Welsh private sector firms signalled a marked rise in output charges at the end of 2022. Higher selling prices were often due to the pass-through of greater costs to clients, according to panellists. Although sharper than the long-run series average, the rate of charge inflation was the slowest since August 2021.That said, Welsh companies recorded the second-fastest rise in output prices of the 12 monitored UK areas, slower than the West Midlands only.

Kevin Morgan, NatWest Wales Regional Board, said: “Welsh firms ended the year on a promising note, as business activity and new orders returned to expansion territory in December.

“Modest upturns followed stronger demand conditions, with Wales the strongest performing monitored area of the UK.

“Nonetheless, cost pressures continued to impact business decisions, as employment was broadly unchanged amid cost cutting initiatives and reductions in temporary labour.

“Cost burdens and output charges continued to rise at historically elevated rates, as energy price hikes were passed through to customers. Inflationary pressures eased, however, amid reports of reductions in some key input prices.”

The funding will help to support the development and roll-out of IQ Endoscope’s ground-breaking medical device which has the potential to revolutionise the early diagnosis of a range of cancers and other gastro-intestinal conditions.

IQ Endoscopes has created a single-use endoscopy device which is not only cost effective and scalable but also sustainable.

The company was recently supported with grant from Cardiff and Vale Health Board, and received backing from the Cardiff Capital Region Challenge Fund to create a new recycling strategy for the product

Dr Patrick Ward-Booth has more than 40 years of clinical experience in the endoscopy field, while CTO Andrew Miller has a background in automotive engineering which has been applied to the design and manufacturing of the company’s products.

The business was launched in 2017 and has raised £5.9 million to date, with seed funding and subsequent investment raised from investors including the Development Bank of Wales.

Of the 70 million endoscopy procedures currently completed each year, 98 per cent are performed with reusable devices which require decontamination and reprocessing after each use, which is both costly and reduces patient capacity, as well as posing the risk of cross contamination.

IQ Endoscopes aims to add much needed capacity and flexibility to help the healthcare system meet patient demand.

Matt Ginn, CEO at IQ Endoscopes, said: “Regulatory bodies such as the FDA are increasingly encouraging single use endoscopes as a means of improving patient safety and ensuring the early detection of GI diseases.

“Single use endoscopes not only eliminate all threat of cross contamination between procedures, but also increase throughput of patients and allow greater access to treatment on a global scale.

“This latest financial backing will allow us to bring our disruptive technology to market, making it available to patients undergoing vital treatments and procedures as soon as possible. Furthermore, we can continue our organisational expansion in South Wales and ensure we scale the organisation in line with commercialisation plans.”

Tim Rea, investor at BGF, said: “This was an exciting opportunity to back an early-stage medical device business with a truly innovative technology that has the potential to make a significant positive impact on a strained area of the healthcare system.

“The team at IQ Endoscopes are extremely committed to improving outcomes for patients and healthcare providers the world over. This investment will enable IQ Endoscopes to complete its remaining developmental milestones against a clear roadmap towards its next stage of growth.”

Dr Richard Thompson, senior investment executive at the Development Bank of Wales, said: “Matt Ginn and the team at IQ Endoscopes have made impressive progress. As a PhD materials scientist, I’ve been particularly impressed at the quality of the products the team has developed.

“As an initial investor into IQ Endoscopes, we’re delighted to see the progress they’ve made, and to have made a second med-tech equity co-investment with the ventures team at BGF, increasing our stake in this exciting company.”