The East Midlands experienced the biggest jump in business activity for months in August, according to a new economic report.
The monthly NatWest East Midlands Business Activity Index suggested that while the jobs market continued to get worse last month, cost pressures softened.
The general improvement came as the economy opened up again – although there are fears the latest rise in Covid-19 cases will lead to further constraints on business.
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NatWest’s seasonally adjusted index measures the month-on-month change in the combined output of the region’s manufacturing and service sectors.
It found the latest economic expansion had been strong, despite being slower than the 海角视频 average.
The upturn was reportedly linked to stronger client demand, with some firms noting a further release of pent-up demand following the easing of Covid-19 restrictions.
NatWest said: “Private sector firms operating in the East Midlands signalled a marked increase in new orders during August, as the rate of growth accelerated to the fastest since February 2018.
“Firms stated that greater new business inflows stemmed from reports of a gradual recovery in demand following the easing of lockdown restrictions, with some noting the acquisition of new clients.”
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NatWest said business expectations across the East Midlands’ private sector remained moderate in August amid ongoing uncertainty over the pandemic and Brexit.
The degree of confidence slipped from a recent high in July but remained well above April’s low.
The dip in optimism reflected the national trend, but the level of positive sentiment seen across the region was below the 海角视频 average.
NatWest said private sector firms in the East Midlands continued to reduce their staffing numbers in August, although the rate of attrition was among the slowest of the 12 monitored regions – behind the North East and Scotland.
August data signalled another monthly fall in outstanding business across the East Midlands private sector.
The rate of decline quickened to a solid pace, as firms noted sufficient capacity to process incoming new work in a enough time.
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John Maude, NatWest regional managing director for the Midlands and East of England, said: “East Midlands firms continued to signal a strong pick-up in client demand following the easing of Covid-19 restrictions in August.
“New business rose at the fastest rate since February 2018 amid further reports of pent-up demand being released.
“Nonetheless, firms continued to reduce their workforce numbers in August as pressure on capacity fell again.
“Lower wage costs were also reportedly behind a slower increase in input prices, as firms increased their selling prices only fractionally amid efforts to encourage new sales.”