Growth in business activity in the north west has hit a nine-month high, according to the latest NatWest North West PMI.
However, it stipulated most of the field work undertaken to collate data was completed before the escalation of the coronovirus in Europe.
The NatWest North West Business Activity Index – which measures change in the combined output of the region’s manufacturing and service sectors - registered once again above 50.
The index reached 53, up from 51.7 reported last month, and following a consecutive five-month contraction at the end of 2019.
The report stated the upturn in activity growth is underpinned by rising activity in the service sector, while decline in local manufacturing output meanwhile eased.
An uptick in goods and services demand is highlighted by the volume of order books rising for the second consecutive month, with firms citing reduced political uncertainty and increased client enquiries, the report said.
However, the report said firms in the north west continued to operate below full capacity, despite increase in inflows of new businesses, with backlogs of work falling at a faster rate than in January.
There was also a decline in employment across the region, following slight increased through December and January, compared to a further - albeit slower - rise nationally.
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Richard Topliss, chair of NatWest North Regional Board, said: “The north west private sector continued its positive start to the year into February.
“Business activity growth gained momentum and reached the strongest since May last year, with reports from local businesses that the reduction in political uncertainty following the general election had released pent-up demand for the region’s goods and services.”
“However, it’s important to consider that most of the field work for February’s survey was completed before the escalation of the coronavirus in Europe.
“The potential disruption to activity from virus containment efforts poses a new challenge to local firms, with the survey already revealing an impact on some of the region’s major export markets and a dip in business confidence.”
The report said optimism had “eased” from the 16-month high reported in January, amid concerns over the coronovirus outbreak in China.