Rhodri Morgan drums up business at a trade fair in Xiamen in 2004

The number of new jobs created in Wales by overseas investors fell 36% over the 2004-2005 period, while the UK total rose 31% to a new record level.

Last year, inward investment created 2,593 jobs in Wales, according to the Department of Trade and Industry.

The Welsh Development Agency (WDA) said the figures reflected the lack of any large individual project.

Between 2004 and 2005, jobs created by overseas investment in Wales accounted for 6.6% of the UK total.

In the 2003-2004 period, Wales accounted for 16% of the UK total, creating 4,064 jobs.

Performance

In slipping to ninth place in the league, Wales is only trailed in terms of investment from overseas by the East Midlands, the south west of England and the east of England.

INWARD INVESTMENT JOBS 2004-05 South East 5,379 North West 5,376 Scotland 4,340 West Midlands 4,083 London 3,955 North East 3,947 Northern Ireland 2,627 Yorkshire & Humber 2,599 Wales 2,593 East Midlands 1,794 East England 1,648 South West 1,251 Total: 39,592. Source: DTI

First place has now been taken by the south east of England, followed by the north west and then Scotland.

The WDA said other parts of the UK were important sources of investment for Wales, and it had been performing well in that area.

Of the 94 investment projects recorded by a WDA team in Wales in the last financial year, 40 had come from other parts of the UK, the agency said in a statement.

As well as the lack of large individual projects affecting Wales' foreign investment performance between 2004 and 2005, competitiveness in the investment market had also contributed to the drop, according to the WDA.