NW is ‘strongly optimistic’ about the coming year

SURVEY SHOWS FIRMS ARE FEELING POSITIVE ABOUT FUTURE

BUSINESS activity in the north west rose marginally in February as firms remained ‘strongly optimistic’ about the outlook for the next 12 months.

The latest NatWest Regional PMI survey has shown that while only ‘very little’ ground lost in January’s sharp fall in output was recovered, there were reasons for positivity - and expectations rose to the highest since last September.

Each region is given an index reading based on the survey, with any number over 50 showing growth and with higher numbers showing faster growth.

In the north west, that figure was 50.3 - just above the ‘no change’ level, following a reading of 37.1 last month as the third national lockdown began. Lockdown measures continued to weigh on inflows of new business at firms in the north west during February.

But having deteriorated sharply in January, the level of new business showed only a marginal decline in the latest survey period, matching the trend seen across the UK as a whole. Richard Topliss, chairman of NatWest North Regional Board, said: “February was another difficult month for many businesses across the north west as lockdown measures continued for a second month. “A PMI reading of 50.3 highlights that the level of business activity was not materially different to that seen in January and therefore still down compared to late last year,

The local economy has been more resilient in the face of the latest lockdown than was the case last spring Richard Topliss

but it does at least confirm that the local economy has been more resilient in the face of the latest lockdown than was the case last spring.

“As well as having to contend with restrictions on activity and challenging demand conditions, local firms also face pressure from rising costs that stem from global supply shortages and increased shipping fees. Nevertheless, businesses in the region have continued to grow in confidence about the outlook, with

activity widely expected to pick up as restrictions are lifted over the coming months.”

Despite the challenges, NatWest said firms remained “strongly optimistic” about the outlook for the next year, with expectations the highest since last September and slightly above the historical average.

Panellists surveyed said that was due to optimism over lockdown measures being lifted over the coming months.