It's not just businesses finding things tough in the current economic environment. Workers at Afon Wen laundry in Cardiff are tightening their belts. One describes ending any spending on leisure or luxuries, while others admit 'the lifestyle has definitely changed.'
There are fresh fears Wales and the rest of the UK could slide into recession again, with new figures reflecting a bleak period for growth. According to official figures released today, gross domestic product fell by 0.3% in the last three months of last year.
– Carwyn Jones AM, First Minister
Today's GDP figures are extremely disappointing - but not surprising. We have repeatedly warned the UK Government their austerity cuts were too deep, too fast. The Deputy Prime Minister is now in agreement with us. Their cuts to capital investment in major infrastructure projects is causing damage to our economy at a time when spending by households and businesses is too weak to offset cutbacks in UK Government spending.
Furthermore, the Chief Economist of the IMF has now advised the Chancellor to reconsider his plans. A new plan for growth and jobs should now be a major priority for the Prime Minister and the Chancellor of the Exchequer.We are doing all we can within our powers to support and encourage business in Wales and our Programme for Government places jobs right at the heart of what we do.
The Office for National Statistics has announced that GDP shrank by 0.3% in the final three months of 2012, compared with a 0.9% rise in the previous three months.
The announcement could mean the start of another period of recession the UK.
GDP stands for Gross Domestic Product, and it attempts to show the economic state of the country in a number.
It's a measure of how the economy has grown or contracted over a three month period.
The level of GDP is measured in three ways: the value of the goods and services produced by the economy, the value of goods and services purchased by households and the government, and the income generated in terms of profit and wages.
The latest GDP figures for the fourth quarter are expected to be published today.
Businesses are braced for signs of further recession, with the economy expected to contract by 0.3%.
The most notable slump is expected to be seen in manufacturing and construction sectors. The figures are likely to have an impact on the already struggling retail sector.