Covid-19’s stranglehold on region weakens

THE downturn in business activity is easing, according to a key regional barometer. June saw the softest decline since the onset of the coronavirus outbreak, with new orders rising for the first time in forum months, the NatWest Yorkshire & Humber PMI report revealed.

It was one of only three regions in the UK to see a slight upturn, alongside the East and West Midlands.

The headline NatWest Yorkshire & Humber Business Activity Index – a seasonally adjusted index that measures the month-on-month change in the combined output of the region’s manufacturing and service sectors – registered 49 in June, up from 28.9 in May. The reading pointed to the slowest contraction in private sector activity in Yorkshire & Humber since the March lockdown.

The marginal reduction was softer than the national average, with the region’s manufacturing sector showing signs of a nascent recovery.

Richard Topliss, chair of the NatWest North Regional Board, said: “The Yorkshire & Humber private sector continued to trend towards stabilisation in June, with activity falling only marginally after three months of sharp contraction. “However, the most positive reading came from the New Business Index, which pointed to the return of demand growth following a three-month absence.

Though only marginal, the improvement in demand conditions should give local businesses the confidence to start ramping up operations now that restrictions are being eased, and the region should see a rise in activity in the coming months.

“Firms were seemingly confident of an activity expansion in the year, which suggests it is only a matter of time before Yorkshire & Humber businesses produce sustained growth once again.”