Business activity in London soared to a three-year high last month - the fastest increase of all 海角视频 regions monitored, a new NatWest report has shown.
The bank's Regional PMI figures show firms in the capital saw a "marked uplift" in business activity at the start of 2020, as the easing of political uncertainty after the general election led to a "steep improvement" in new work.
Employment growth also quickened in January as firms looked to temper a strong rise in outstanding business.
Companies were meanwhile much more confident for future output growth, with the level of optimism soaring to the highest for nearly three years.
The PMI figures give each region a Business Activity Index rating, where any reading above 50 signifies growth.
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For January, London posted at 56.5, indicating the sharpest rise in output at private sector companies in London for 33 months.
The index rose from 51.6 in December, when business activity expanded at only a modest pace. Compared to the rest of the 海角视频, the capital saw the quickest increase in activity of all 12 monitored areas.
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Stuart Johnstone, managing director, London and South East, corporate and commercial banking, said: “London businesses turned on the taps at the start of 2020, as the first post-election survey data showed a sharp rise in activity across the capital’s private sector.
"Client demand notably soared, leading to further pressure on capacity and the quickest rise in staffing levels for nearly two years.
“With the path to Brexit made all-but-certain by the election result, much of the previously pent-up demand was released, with new orders rising at the quickest pace since May 2017. Businesses were also a lot more confident for future activity, amid expectations of new investment and higher government spending in 2020.
“The benefits from the post-election rebound were widespread with all-but-two of the monitored 海角视频 areas posting a rise in new business in January (compared to just three in December). Nevertheless, London continued to top the rankings for growth in activity, new business and employment, showcasing the economic strength of the capital at present.”
The PMI report was released on Monday, and said backlogs rose for the fourth month running at London firms, as companies struggled to keep up with the sharp rise in new orders.
The rate of growth was the fastest in nearly four years and solid overall.
Some panellists commented on a lack of resources to complete new orders, NatWest said.
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Subsequently, the pace of job creation strengthened to the sharpest since February 2018. Hiring activity again outperformed that seen across the other 11 monitored 海角视频 regions.
Higher salaries and supplier price hikes led to a further sharp rise in total input costs in January. Moreover, the rate of inflation ticked up for the first time in five months, albeit slightly.
Due to greater cost pressures and increased demand, London companies raised their output prices solidly at the start of the year.
The uptick was the quickest since November 2017.
Amid a notable easing of political and economic uncertainty, business expectations for output in 12 months' time rebounded in January.
Firms were the most confident about future growth in nearly three years, with many noting hopes for increased spending from both the public and private sector, as well as plans to expand into new markets.