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Economic Development

Private sector output in East of England falls again - but jobs growth continues

Latest NatWest PMI data shows 'tentative signs of recovery'

The latest NatWest PMI data shows East of England business activity fell in December(Image: Cambridge Newspapers Ltd)

Private sector output in the East of England has fallen for the second month running - but jobs growth in the region continued.

The latest PMI survey data from NatWest and IHS Markit is released today - and shows business activity fell slightly in December as new work volumes fell for the third month in a row.

That contrasted with the national picture, where order book volumes rose for the first time in five months.

NatWest's headline East of England Business Activity Index, which is designed to measure the change in the combined output of the area's manufacturing and service sectors, posted 49.1 in December- up from 47.3 in November.

That shows that output has contracted again - although the contraction has softened since November.

A fall in manufacturing output cancelled out what NatWest called "a fractional uptick in service sector activity".

NatWest said workforce numbers had risen for the second month in a row while the rate of job creation quickened slightly.

John Maude, from the NatWest Midlands and East Regional Board, said: “Private sector activity across the East of England declined for the second month running at the end of 2019, although the fall eased to a marginal rate in December.