Regional job creation at close to record high

JOB creation hit a “near-record” rate and business confidence strengthened at the end of 2021 despite Omicron, according to the latest Natwest survey of East Midlands businesses.

The bank’s East Midlands Business Activity Index suggested there had been a solid upturn in activity across the East Midlands private sector, albeit at a softer pace due to the spread of the Omicron Covid variant and supply-chain disruption. It said the service sector in particular was affected by the new variant.

Other data showed firms across the East Midlands signalled only a slight expansion in new business during December – also put down to the new variant.

Natwest said the pace of the upturn was slower than the UK average, but reflected the wider trend across all regions of more muted client demand.

It said: “East Midlands firms registered stronger expectations regarding the outlook for output over the coming year at the end of 2021.

“The degree of confidence was the highest for three months amid hopes of greater client demand in 2022, and an end to Covid-19 uncertainty as the year progresses.

“Buoyant sentiment across the region was stronger than that seen across the UK as a whole, with manufacturers more upbeat than their service sector counterparts.”

The December data also signalled a steep pace of job creation across the East Midlands private sector - at the secondfastest rate since records started in January 1997.

Alongside the East of England, it was the second-sharpest rise of the 12 monitored UK regions.

Only London registered a quicker upturn in workforce numbers.