Weaker demand saw Yorkshire & Humber firms suffer another monthly fall in new business in December, a new temperature test of the regional economy suggests.
The pace of contraction - the second fastest of the 12 海角视频 regions and nations - slowed last month, according to the findings of the NatWest Yorkshire & Humber PMI Business Activity Index which surveys the manufacturing and service sectors. Business leaders cited subdued demand partly due to a sluggish 海角视频 economy towards the end of last year.
But combined output of the sectors indicated a steadier period as December brought a third successive month of rises from 48.4 to 50.0, following four consecutive months of falls. The movement brought Yorkshire & Humber to the "no change" mark while the 海角视频 overall saw a modest increase across the same period.
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Staffing levels across Yorkshire & Humber stagnated during the month after rising in November for the first time in three months. The weaker demand causes some firms not to extend temporary worker contracts or replace voluntary leavers while those that did expand their workforces did so while chasing productivity gains.
And with fewer new orders, firms reduced backlogs of work making for the tenth successive month of reduced outstanding work, albeit at the weakest rate of reduction since July. Meanwhile costs built up at the fastest pace since July - including higher labours costs - prompting raised prices, at a five month high but below the 海角视频 as a whole.
While in optimistic territory, confidence fell further below its long term average in December as firms said sales growth and new product development boosted outlook but overall economic headwinds dampened expectations.
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Malcolm Buchanan, chair of the NatWest North Regional Board, said: "The stabilisation of Yorkshire & Humber's private sector is a slice of good news as it ends a four-month period of contraction. That said, the region is still underperforming by comparison with the 海角视频 average, which showed a strengthening of growth at the end of 2023.
"Nevertheless, another month in which the slump in demand has eased suggests Yorkshire & Humber may be past the worst of its downturn, and we can begin to look towards some greenshoots in 2024. Indeed, anecdotally, we saw businesses cite sales growth as a reason to be optimistic for the year ahead, with new product launches and slowing inflation expected to boost demand."