East Midlands business output growth returns
The East Midlands economy performed well in February, according to a monthly tracker survey.
The NatWest East Midlands PMI® Business Activity Index showed the first upturn in business activity in the region since May last year – although the rate of growth was slower than the UK average.
Greater output in the region was linked by firms to increased new orders and more stable supply chains, and brought to an end a nine-month sequence of decline.
East Midlands private sector firms’ expectations regarding the outlook for output over the coming year strengthened midway through the first quarter. Although still below the UK average, the degree of confidence was the highest since April 2022. Optimism was reportedly linked to investment in new products and services, and the acquisition of new clients. Manufacturers and service providers recorded stronger positive sentiment.
Rashel Chowdhury, NatWest Midlands and East Regional Board, said: “East Midlands private sector firms signalled a renewed rise in output and new business during February, amid stronger demand conditions. Although only marginal, the latest data indicated an end to a sequence of contraction in business activity. Nonetheless, spare capacity was still seen across firms, as employment rose only fractionally.
“On a positive note, inflationary pressures softened again. Although still marked, rates of cost and selling price inflation slowed to the weakest in almost two years as supply chains improved and demand conditions remained subdued. Slower upticks partially supported stronger business confidence in the year-ahead outlook, which picked up to the highest in almost a year.”
