Health Secretary Jane Hutt

The news has been welcomed by the Welsh Health Minister Jane Hutt who has set "tough" targets for the health authorities in Wales.

"I am very encouraged by this reduction in the numbers of patients waiting for treatment following a very difficult winter," she said.

"This is the result of hard work and focused effort by the NHS to reduce lists."

The statistics show that more people are getting their out patient appointments quicker but two of the five health authorities have experienced a small increase in the queue.

In Gwent and Bro Taf health authorities - which cover large sections of south Wales - the number of patients waiting for rose by up to 8%.

Tough targets

Jane Hutt said: "In May I agreed tough waiting targets with the NHS with considerable funding to help meet them.

"Since then the NHS has been using the money to tackle unacceptable waiting time.

"Apart from in December, inpatient/day case lists have fallen every month since May."

Health authorities have until the end of this month to slash waiting lists by 15% to meet end of year targets.

There is massive potential for Welsh businesses both in NHS Wales and the public sector

Assembly Business Minister, Andrew Davies

Meanwhile the percentage of Welsh companies supplying the NHS in Wales needs to increase dramatically, according to the Welsh Assembly Business Minister, Andrew Davies.

The NHS buys in around �500 million worth of goods and services a year, including everything from clothes and foods to cleaning services.

But only 10% are supplied from businesses within Wales.

Speaking at a conference on the future of NHS Procurement on Wednesday he said: "There is massive potential for Welsh businesses both in NHS Wales and the public sector procurement market as a whole in Wales.

"We must ensure that Welsh companies are fully aware of all these opportunities so that can meet the standards required by our public services and capitalise on this."