BUSINESSES are starting 2014 in their strongest position for years, according to the latest Quarterly Economic Survey (QES) from the South Wales Chamber of Commerce.

The Q4 survey for 2013, released on January 7, shows that sales are up, exports have increased, advance order books are healthy, and productivity has improved over the last 12 months.

It also shows more businesses are investing in future growth and most are expecting to increase their profit margins over the next year.

The results of the QES monitor the performance of businesses in south and mid Wales, and acts as a barometer for the strength of the Welsh economy.

More than three-quarters (85%) of businesses surveyed reported improving or consistent sales in the UK market, an increase of 10 percentage points since the start of the year (75%), while the figure for overseas exports was 84%, up from 76% in Q1 of 2013.

South Wales Chamber of Commerce director Graham Morgan said: “Our final survey for 2013 is our strongest yet, with sales and export figures in particular at the highest levels we have seen for many years, and order books continuing to track sales upwards.

“Businesses are no longer simply trying to weather the conditions of the economic storm of the last few years but are actually expecting to increase their profits and grow over the next 12 months.

“We have called consistently for more support for Welsh businesses to help them access markets across the rest of the UK and overseas. There are plenty of businesses producing fantastic products, and delivering outstanding services, that are capable of penetrating markets around the UK and Europe, that would add real value to the Welsh economy.”

Almost all businesses surveyed (96%) maintained or increased their levels of investment in staff training, and more than three quarters (89%) are expecting their businesses to become more profitable over 2014.

Graham Morgan said: “Although there has been a modest rise in businesses recruiting new employees, the numbers are nowhere near where we would like to be seeing them, and this is a reminder that we continue to exist in a difficult economic climate.”

He added: “But, as we move into 2014, the future is certainly looking very positive.”