The North West "showed a continued strong recovery" in April despite "signs of ever-increasing price pressures", according to new data published by NatWest.
The latest Regional PMI figures revealed the region had recorded its fastest upturn in business activity since July last year.
That was despite average charges for goods and services rising at a record rate as local firms sought to offset soaring costs.
READ MORE: Click here to sign up to the BusinessLive North West newsletter
NatWest added that employment levels continued to rise strongly in the region, although the pace of job creation eased to the slowest this year, in line with a drop in business confidence towards the outlook.
The headline North West Business Activity Index – a seasonally adjusted index that measures the month-on-month change in the combined output of the region’s manufacturing and service sectors – climbed to a nine-month high of 58.7 in April, up from 56.9 in March.
The bank said this signalled a sharp and accelerated rate of growth, and went against the broader 海角视频-wide trend.
Latest data showed a sustained improvement in the level of demand faced by firms in the North West, with inflows of new work rising for the fourteenth month running amid reports of growing sales opportunities. The rate of expansion eased to a three-month low, although it remained robust by historical standards and was quicker than the 海角视频-wide average.
Most Read
Underlying data also showed increases in new business across the region's manufacturers and services firms, with the latter recording the more marked rise.
April's survey revealed that, on balance, firms in the North West anticipated a rise in activity over the next 12 months. This reflected hopes of a continued upturn in demand and improving investment prospects. Expectations did, however, ease to a four-month low, as businesses voiced concerned about rising prices and associated squeeze on purchasing power, NatWest added.
Richard Topliss, chairman of NatWest North Regional Board, said: "The North West economy carried strong momentum into the second quarter of the year, with the region's business activity index pointing to the strongest growth for nine months in April.
"Less positively, however, firms' optimism towards the outlook waned as concerns grew about the sustainability of the current rate of growth, especially given the strong inflationary environment and the associated cost-of-living squeeze.
"While many local firms continued to take on new staff, the rate of job creation eased to the weakest so far in 2022 as firms showed some signs of reining in their hiring plans amid record cost and price increases."