Yorkshire and the Humber is second only to London in business activity expansion, albeit at the slowest seen in the past three months.
Weaker demand growth has been cited, while confidence remains elevated despite the Covid-19 flare-up - over and above the rest of the 海角视频.
The headline NatWest Yorkshire & Humber PMI Business Activity Index – a seasonally adjusted index that measures the month-on-month change in manufacturing and service output – fell to 54.7 during December, down from 57.3 in November.
Read more: Overheads a concern for business as profit forecasts dip on the Humber
According to firms, shortages of raw materials and labour continued to weigh on activity levels.
Sector data revealed that the service sector remained the key driver of growth across the region as manufacturing output was restrained by issues across the supply chain.
When it came to “hugely optimistic” outlook,investment plans, new product developments and stronger demand were all factors expected to lift activity over the next 12 months.
Richard Topliss, chairman of NatWest North Regional Board, said: “Although growth across Yorkshire & Humber slowed in December, the region is actually performing quite resiliently when compared with other parts of the 海角视频. Of the other 11 areas monitored by the survey, only London recorded quicker growth.
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"However, risks have grown since data were collected as the Omicron variant spreads rapidly. There were already reports from firms that staff availability was impacted by Covd-19 and had directly affected activity levels. Further disruption will likely skew the outlook for growth further to the downside."
Employment levels continued to increase at a historically-elevated pace in December. Jobs growth was particularly steep at service providers, while manufacturing workforce numbers grew modestly.
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Firms signalled still-substantial cost pressures, with the seasonally adjusted Input Prices Index recording its second-highest reading in almost 25 years of data collection. Manufacturers continued to see far stronger increases than services firms. Higher raw material prices, increased shipping fees, greater fuel costs and wage pressures were all cited as sources of inflation.
Latest survey data showed another considerable increase in prices charged for goods and services too. The rate of inflation was only marginally slower than November's survey record as firms continued to share the burden of substantial cost pressures with their clients.
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