Latest analysis from NatWest bank suggests East Midlands businesses are stepping up productivity to meet stronger demand as lockdowns ease.
It also shows that business confidence in the region is at its strongest since September, 2015, although costs are rising at their fastest since February, 2017.
The seasonally adjusted NatWest East Midlands Business Activity Index suggests the strongest expansion in business activity for seven months.
Firms stated that the upturn was due to greater client demand and a further increase in new orders.
Many also said the recent relaxation of Covid-19 restrictions had boosted customer spending.
That said, the rate of growth was among the slowest of the 12 monitored º£½ÇÊÓƵ regions.
Businesses across the East Midlands said their expectations for the year ahead were improving again – and hit their highest since September 2015.
The degree of confidence was stronger than the º£½ÇÊÓƵ average, and bosses put the greater optimism down to the relaxation of restrictions and hopes of a further uptick in demand.
Regional employment also increased for the third month running in April, and was at its sharpest since November 2018, but the growth rate was much slower than the º£½ÇÊÓƵ average.
The rate of increase in output charges softened slightly in April, but was nonetheless the second-sharpest for 10 years. Anecdotal evidence suggested that the rise in charges was due to the partial pass-through of higher costs to clients.
The pace of inflation was also quicker than the º£½ÇÊÓƵ average and steep overall.
John Maude, from the NatWest Midlands & East Regional Board, said: “Business activity picked up in April, as output growth accelerated to the sharpest since September 2020 amid the further loosening of Covid-19 restrictions.
“Stronger client demand was reflected in the steepest uptick in new business since last summer, when lockdown measures were at their weakest and most customer-facing businesses were open.
“Brighter news for firms was also seen in the fastest expansion in employment for over two years, as strain on capacity intensified.
“Greater confidence in the outlook for output was also reflected in the most marked degree of optimism since September 2015.
“Sharp cost pressures remained apparent in April, as input prices rose at the steepest pace for over four years.
“Nevertheless, firms were able to partially pass-through costs in the second-fastest increase in charges for a decade.â€
