Business activity sees return to growth across Yorkshire
BUSINESS ACTIVITY returned to growth across Yorkshire in January as output growth also quickened to an eight-month high, according to the latest NatWest PMI survey.
Data showed that the moderate upturn in business activity was supported by a renewed expansion in new business, which was the fastest since July 2019.
Stronger client demand resulted in greater workforce numbers across the region’s private sector, despite a further contraction in outstanding business.
Richard Topliss, chairman of the NatWest North regional board, said: “2020 began on a much more positive note for private sector firms in Yorkshire & Humber, with renewed expansions in output and new orders in January.
“Although only moderate, the upturn in new orders resulted in a return to job creation across the region.”
Firms registered a notable pick up in output expectations, with the degree of confidence reaching the highest since October 2018.
At the same time, greater demand allowed firms to increase their charges at the fastest pace for 11 months.
Mr Topliss said: “Output expectations also improved as firms reported greater enquiries from new export markets and the potential for a reduction in uncertainty following the UK’s exit from the EU. Elsewhere, while cost burdens rose at a softer pace, companies took advantage of stronger demand conditions and raising their output charges at the quickest rate for 11 months.”
The headline NatWest Yorkshire & Humber Business Activity Index is a seasonally adjusted index that measures month-onmonth changes in the combined output of the region’s manufacturing and service sectors.
The index posted 51.9 at the start of 2020, up from 47.6 in December, signalling the first expansion in business activity since last September.
The rate of growth was the sharpest since May 2019 as firms linked the upturn to stronger client demand. Although the pace of increase was slower than the UK average, it indicated a notable turnaround from the solid decline seen at the end of 2019.
The rate of job creation was moderate, but nevertheless the third-fastest of the 12 monitored UK regions, slower than only London and the South West.
Private sector firms in Yorkshire were the most upbeat of the 12 monitored UK regions at the start of 2020.