Region’s businesses round off third quarter with another solid month of growth

The latest NatWest Growth Tracker report showed a ninth straight monthly rise in the level of business activity across the North West private sector in September.

The headline North West Business Activity Index registered 52.6, down from a reading of 54.0 in August.

The fall in the index towards the 50.0 no-change threshold indicated a slowdown in the rate of expansion compared with that seen the month before. Nevertheless, the latest increase in total output of goods and services was still solid overall and matched the rate of growth recorded across the UK as a whole.

While remaining positive, local firms’ expectations towards activity in the coming year weakened for a second straight month to the lowest since January. They also moved below the UK average. Anecdotal evidence attributed this partly to the news flow around possible tax increases, as well concerns for health of economic conditions in mainland Europe.

In line with trend seen in each month since May, firms in the North West reported a rise in the workforce numbers in September. Higher employment was linked to not only growing workloads, but also business expansion plans, which included investment in sales and marketing teams.

Malcolm Buchanan, chair of the NatWest North regional board, said: “The North West finished the third quarter with another solid month of growth in September. Stronger demand and rising inflows of new business continued to provide tailwinds for the local economy. Business expectations have, however, fallen back further from July’s post-election high, perhaps a reflection of recent rhetoric around the fiscal outlook. Even so, employment growth is still ticking along nicely. Cost pressures have been running at a more comfortable level in the past couple of months, with firms reporting a rate of increase that matches the pre-pandemic trend as well as slower price rises of their own.”