Businesses in the West Midlands saw activity fall for the second month running in December, according to a new report.
The latest Natwest West Midlands PMI data showed that business activity across the region experienced a 'modest fall' - matching the national trend seen during 2019.
But at the same time, the West Midlands posted a rise in new orders for the first time in four months with local firms 'optimistic' about the future.
Key findings for the West Midlands show:
- Marginal rise in new orders ends three months of decline
- Sustained reduction in backlogs of work
- Employment stable in December
- Marginal rise in average output prices
- Modest improvement in export conditions
Underlying data showed that last month's decrease in output can be centred on the manufacturing sector where there were reports of political uncertainty weighing on client demand.
And following a decrease in each of the previous three months, inflows of new work at West Midlands firms returned to growth in December - albeit, the increase was only marginal as new business was partially offset by a sustained fall in manufacturing order book volumes.
Recruitment activity across the region barely changed from November - a slight improvement on the job losses seen in each of the previous four months.
Looking ahead, firms expectations for output over the next 12 months improved to a seven-month high in December.
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John Maude, NatWest Midlands & East Regional Board, said: "Recent trends in the West Midlands economy have largely mirrored those seen across the 海角视频 private sector as a whole, with business activity and hiring hampered by political and economic uncertainty.
"However, there are already signs of the tide starting to turn, with local firms reporting the first increase in order book volumes for four months in December and business confidence on the rise amid hopes of the release of pent-up demand."