Post-virus recovery picking up

Business activity has risen at record levels in the North East as recovery from lockdown continues, according to a key indicator.

The NatWest North East Business Activity Index found that firms are reporting a significant rebound in activity and strengthening order books, job cuts continue as firms look to realign capacity with demand.

Au g u s t s aw t h e N o r t h East private sector continue to recover from the record collapse in business activity brought on by the coronavirus pandemic.

The index – a seasonally adjusted measure of monthon-month change in the combined output of the region’s manufacturing and service sectors – moved to an all-time high of 66.0, up from 60.4 in July.

This signalled a sharp and accelerated increase in activity, and one that was the quickest among the 12 regions monitored

T h e i n c rea s e wa s th e sharpest seen since comparable data were first available in January 2001.

Richard Topliss, Chair, NatWest North’s Regional Board, said: "Business activity across the North East showed a record increase in August as more firms across the local economy – and their clients – reopened and ramped up operations following the lockdown.

"The results need to be viewed in the context of the unprecedented collapse in activity during the spring, but it's nevertheless encouraging to see demand rebounding, and on a steeper trajectory than the rest of the UK.

"With a full recovery still a way off, firms are overstaffed and having to cut back.”