Business activity across the North West private sector continued its recovery in June, with the pace of growth easing only slightly from May's record high, latest 海角视频 regional PMI data from NatWest has revealed.
However, the data shows that the rebound in activity was accompanied by a record increase in average prices charged for goods and services amid soaring cost pressures.
The headline North West 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 65.0 last month, down slightly from an all-time high of 66.4 in May.
Supporting growth in activity was a sustained upturn in inflows of new work, linked to the reopening of the economy and improved confidence among clients.
Businesses in the North West reported another month of sharply rising inflows of new work in June, as client demand continued to recover in line with the easing of virus containment measures.
The respective seasonally-adjusted index registered a series record high for the second month in a row and signalled the quickest rate of growth among the 12 monitored regions.
Underlying data indicated sharp increases in new business at both manufacturers and services firms.
Business sentiment towards activity in the coming year remained highly positive in June, reflecting the impending end of Covid restrictions and hopes of a continued recovery in market demand.
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Growth expectations did, however, ease for the first time in six months, pulling back from May's series-record high to the lowest since March, NatWest added.
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Rising workloads and associated attempts to expand staffing capacity led to a further steep rise in employment across the North West in June. The pace of job creation was unchanged from May's near seven-year high and broadly in line with that recorded across the 海角视频 as a whole.
Of the monitored sectors, manufacturing recorded the steeper rise in workforce numbers, although staffing levels also rose at a solid pace across services.
The level of outstanding business (i.e. work received by not yet completed) at firms in the North West rose sharply again in June, posting a record increase for the third month running.
Where a rise in backlogs was recorded, surveyed businesses commented on difficulties keeping up with demand, in some cases (particularly in manufacturing) due to material shortages.
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Latest data showed a continuation of the recent surge in business costs. The rate of input price inflation faced by firms in the North West accelerated for the twelfth month in a row to the quickest for over a decade. The increase in the region was slightly strong than seen across the 海角视频 as a whole.
Owing to greater exposure to rising commodity prices, manufacturers faced much stronger cost pressures than services firms.
Rising cost pressures, combined with a strong rebound in demand, led to a sharp and accelerated increase in average prices charged for goods and services by firms in the North West in June. The rate of inflation registered a record high for the second month running and continued to outstrip the 海角视频-wide average.
Richard Topliss, chairman of NatWest North Regional Board, said: "Business activity has come roaring back during the second quarter, rising sharply again in June following May's record growth.
"The upturn in new business has shown no sign of relenting, recording a fresh record increase as the reopening of the economy releases pent up demand for goods and services. This is translating into more jobs, but even so firms are having difficulty keeping up with demand, with latest data showing another record rise in backlogs.
"Widespread imbalances between supply and demand for materials, and in some cases labour, are putting considerable upward pressure on firms' costs.
"This has in turn driven a record rise in average charges for goods and services, with more firms feeling encouraged to increase prices as demand recovers."