Growth in the North East has come in above the national average with business activity in the region at its highest level in more than year, according to an influential business survey.
The NatWest North East PMI Business Activity Index, which measures the month-on-month change in the region’s manufacturing and service sectors, came in at 54.0 in May, the same level as the previous month but showing growth levels above the 海角视频 average. The improving economic picture came as surveyed companies saw increasing demand for goods and services, with new business picking up for a second month in a row.
The region’s employment index came in at the 50.0 no-change mark for the third month in row in May, with the North East again outperforming the national picture.
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May survey data pointed to a further rise in input prices across the North East, however, extending a sequence of rises that has now run for exactly four years. But the survey pegged the rate of inflation easing to come in at its lowest since January.
Malcolm Buchanan, chair of the NatWest North Regional Board, said: “The North East region steadied midway through the second quarter, as companies signalled another solid rise in activity that matched that of April. Fuelling firms’ decisions on output was sustained growth of new business. It is likely that notably eased cost pressure also played a part here.
“Though input price inflation was robust, it was slightly softer than both the historical and 海角视频 averages. Selling prices meanwhile rose at a weaker pace in May, but the local rate of inflation was still one of the strongest of the 12 monitored 海角视频 areas.
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“There were positive signals from firms’ hiring decisions in May, as job creation picked up to the joint-fastest for over two years. Furthermore, expectations towards future activity were at their brightest for just shy of three years.”
At the end of last week, business group the CBI said that Britain’s economy would see faster-than-expected growth this year and next as the outlook brightens after a tough 2023. The organisation has upped its forecasts for 海角视频 growth to 1% in 2024 and 1.9% in 2025 thanks to an expected pick-up in consumer spending as inflation falls back and wages remain robust.
There was also a positive forecast from the British Chambers of Commerce, which revised upwards its forecasts for growth for 2024 and 2025 to 0.8% and 1.0% respectively, though it warned that a poor outlook for exports was acting as a “drag anchor” and high interest rates continue to limit investment.