A further reduction in private-sector activity has been seen in the Yorkshire and Humber area in August, according to a business survey.
NatWest’s Yorkshire & Humber Business Activity Index, which measures the output of the region’s manufacturing and service sectors, dropped to 47.7 in August from 48.0 in July. Scores below 50 point to an economy in contraction, with the August data signalling a fifth consecutive monthly fall in output in the region.
Businesses surveyed pointed to a drop new orders amid declining customer demand. Yorkshire and Humber was one of only two 海角视频 areas to see a reduction in output during August.
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Companies remained optimistic, however, that output would rise over the coming year amid hopes for greater global economic stability and improvements in customer demand. Some firms were confident that their growth strategies would bear fruit, though economic uncertainty and subdued demand conditions limited optimism.
As has been the case each month in the NatWest survey since December, local firms reduced employment in August. The rate of job shedding was the the second-sharpest fall of all the areas of the 海角视频 surveyed.
Malcolm Buchanan, chair of the NatWest North regional board, said: “Firms in the Yorkshire & Humber region are struggling to build momentum at present, with difficulties securing new orders from customers meaning that we haven’t yet seen the kind of pick-up signalled in other parts of the 海角视频. The absence of new order growth spelt further gloom for the region’s labour market, with firms remaining reluctant to hire given the recent rise in employer National Insurance contributions. Stronger price pressures were an added headwind.
“Looking to the future, companies are still optimistic that output will return to growth, and a much softer reduction in new orders in August at least provides some tentative signs that demand conditions could be set to turn in firms’ favour as we approach the latter months of the year.”
The tracker has been released ahead of the publication of some key economic indicators. The latest figures on GDP, trade and regional unemployment will all be released in the next week.