Output down in private sector again

Private sector output across the North East has declined for the seventh straight month, according to new figures.

Key Findings in the latest NatWest North East Business Activity Index show:

*Output down for seventh straight month.

*More job losses vecause of excess capacity

*Selling prices fall at jointfastest rate since June 2009

The seasonally adjusted index measures changes in the combined output of the region’s manufacturing and service sectors – registered 46.9 in November, up slightly from October's 39-month low of 46.0 but still signalling a marked rate of contraction in private sector output.

The decline, which was the second-steepest among the 12 UK regions – ahead of Northern Ireland – was led by a sharp drop in services business activity.

Manufacturing output posted another marginal gain.

The survey highlighted generally weaker demand for goods and services and new orders were down for the seventh month in a row, with the latest decrease linked to a combination of political and economic uncertainty, weakness in the automotive sector and lower consumer spending.

Richard Topliss, chairman if the NatWest North Regional Board, said: The data point to the North East private sector economy contracting in the fourth quarter of 2019.

“Current political and economic uncertainties are weighing on demand and business confidence, and look set hinder the North East’s performance right up to the year end.”