The North East saw the biggest rise in business activity in the 海角视频 last month, an influential survey suggests.
The NatWest Growth Tracker data for December, which measures change in the region’s manufacturing and service sectors, revealed stronger demand for businesses across the North East. Private sector firms enjoyed a solid increase in incoming new business in December and confidence around future activity levels improved notably, though employment levels fell for the second time in three months.
The headline North East Growth Tracker Business Activity Index rose from 53.9 in November to 55.1 in December, with scores above 50 denoting growth in the regional economy. The increase was the strongest of the 12 海角视频 areas, the first time the North East has achieved that in more than four years.
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December’s survey data pointed to a ninth consecutive rise in new work across the North East, contributing to firms in the region feeling confident about activity in 2025.
The upbeat findings of the NatWest survey run contrary to much of the recent messaging coming from business organisations about confidence levels among 海角视频 companies following October’s Budget.
The president of the CBI yesterday said that Chancellor Rachel Reeves had “bruised” business confidence by expecting companies to help fill the hole in public finances, while the British Chambers of Commerce released research which suggested that less than a quarter of firms increased their workforce in the last three months of 2024.
But Malcolm Buchanan, chair of the NatWest North regional board, said: “The North East economy continued to expand, and at a stronger rate in December... Firms reported that activity growth accelerated to a 20-month high, while new business inflows also continued to rise at a solid pace. In fact, business activity growth in the North East was the strongest of the 12 monitored 海角视频 regions and nations for the first time since September 2020.
“Confidence surrounding the outlook for activity in 2025 strengthened at the end of the year, with the overall degree of optimism rising to the most pronounced since July. That said, recruitment faltered during December, with firms scaling back headcounts for the second time in three months and to the greatest extent in 2024. Cost pressures faced by North East companies accelerated, contributing to a steeper rate of charge inflation.”
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A number of business groups have raised concerns since Ms Reeves’ decision to raise national insurance contributions (NIC) for employers, among other business cost increases, in the October Budget. The NIC increase is designed to help fund improvements to public services, but has come under criticism for making it more expensive to employ people.
North East firms Greggs, Fenwick and Barker and Stonehouse were among a group of 70 retailers to write to the Chancellor to say they would have to increase prices and cut back on new hiring as a result of her measures. But both Greggs and Hays Travel have since released upbeat assessments on trading and highlighted hopes for growth in 2025.