Output was close to a record high in Yorkshire and Humber in June, as the strong economic recovery continued, but at higher cost.
While the region was one of only two across the whole of the 海角视频 to see acceleration from May, the strongest increase in operating expenses in 13 years was registered.
Re-opening of businesses was credited for driving the demand, with optimism again highest in the 海角视频, and the rate of expansion third highest overall.
The headline NatWest Yorkshire and Humber 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 – increased to 64.5, from 63.7.
It was just 0.1 points shy of matching the survey record set in August 2020.
Although the pace of increase slowed from , it was the second-quickest since the survey data were first collected in 1997.
Richard Topliss, chairman of NatWest’s North regional board, said “The Yorkshire & Humber PMI delivered another strong month during June. The Business Activity Index was just a fraction off matching its survey record seen last August and signalled a sharp uptick in output growth.
“Out of the 12 monitored 海角视频 regions, Yorkshire & Humber was just one of two where activity growth actually accelerated on the previous month. Supporting the latest expansion was a further strong improvement in demand conditions, which firms linked to loosening lockdown restrictions.”
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Private sector businesses in the region observed soaring input cost inflation during June, taking it back to 2008 levels. According to surveyed companies, shortages at suppliers for a wide range of input s continued to exert upward pressure on prices.
At a sector level, manufacturers led the increase, but inflation was also sharp across services firms.
In response to intensifying cost pressures, businesses lifted their charges during June to the greatest extent since such data was first compiled in 1999.
Selling prices at manufacturers were increased at a substantially stronger pace compared to service providers, though rates of inflation quickened in both sectors.
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Mr Topliss said: “Survey data pointed to sharper rates of input cost and output price inflation during June. Price pressures are particularly acute in the manufacturing sector, but we're now seeing a significant spillover into services. With the release of pent-up demand providing such a boost to sales for now, we will continue to watch this space to see what the impact will be of rising prices."
Staffing levels across private sector companies in Yorkshire and Humber increased for a fifth month in a row, with the rate of jobs growth sharp overall and among the fastest ever recorded by the survey.
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According to firms, employment was expanded to support growth in the coming months.
The pace of increase in workforce numbers matched that seen across the 海角视频 as a whole.