Businesses activity in the West Midlands grew slightly in February - according to a new report.
The latest Natwest Midlands PMI data for the region showed that private sector output 'continued to expand' last month, however rates of increase in both activity and new business moderated.
Higher output was mainly linked to a rise in new business and the beginning of new contracts, but reduced travel and component shortages were highlighted as limitations on overall growth.
Key findings in the West Midlands show:
- Output and new orders grew at softer rates
- Input price inflation quickened amid raw material shortages
- Expectations dipped down but remain strong
The report also outlines that employment in the West Midlands dropped for the first time since last November, as hiring activity was offset by resignations at some firms - but the overall decline in job numbers was only fractional.
Input costs rose at the sharpest pace for five months during February, as manufacturers noted higher raw material prices. This was often due to shortages of some inputs as firms looked to re-route supply chains away from China following the coronavirus outbreak.
Meanwhile, there was a solid rise in output prices at West Midlands firms, with the rate of inflation at the highest since last April. The mark-up was still weaker than the 海角视频 average, however.
Expectations for future output weakened for the first time in six months in February, but remained strongly positive overall, after reaching a 33-month high at the start of 2020.
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Firms often noted hopes of new business growth and continued confidence in the 海角视频 economy following the election and Brexit resolution.
John Maude, NatWest Midlands & East Regional Board, said: "Growth momentum in the West Midlands eased slightly in February, latest PMI data showed, with expansions in activity and new orders weakening since the start of the year.
"Nevertheless, these numbers remain good news for the region compared to its performance in 2019, as surging post-election confidence and the release of pent-up demand look to also drive 海角视频 GDP growth in the first quarter.
"The manufacturing sector struggled to regain client demand, however, with customer orders slow to pick up, while the emergence of the coronavirus outbreak places renewed uncertainty on production levels as global supply chains struggle to adjust to factory shutdowns in China."