Private sector business activity grew last month in the Yorkshire and Humber region - but growth momentum is slowing.
That was the finding of the latest NatWest Yorkshire & 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.
The index fell to 59.0 in July, from June’s near-record reading of 64.5, to signal a softer upturn in private sector business activity across the region.
But Richard Topliss, chairman of NatWest North Regional Board, highlighted a sharp rate of growth nonetheless, and broadly level with the 海角视频 as a whole.
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Private sector companies recorded greater intakes of new business during the month, with the reopening of the hospitality sector giving a boost to robust demand.
Despite the lift in new business, the rate of increase eased to its weakest since February.
Firms had their capacities strained further during the latest survey period, with a fifth successive month in which the Outstanding Business Index recorded above the neutral 50.0 mark.
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The rate of backlog accumulation eased to a three-month low, but it was solid overall.
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Staffing levels increased strongly, and firms attributed the lift to to greater operating requirements due to strong demand conditions.
Yet shortages of staff and essential inputs were compounded by strong demand from clients – and the rate of increase in workforce numbers slowed to a five-month low and was below the 海角视频-wide average.
Firms also cited growing running costs and inflationary pressures, and of the 12 monitored 海角视频 regions, only Northern Ireland and the South West recorded faster cost inflation.
Although the Future Activity Index posted its lowest reading in six months, it remained above the neutral 50.0 mark by a considerable margin yet again in July, signalling a high level of optimism among businesses.
Richard Topliss, chairman of NatWest North Regional Board, said: “The Yorkshire & Humber PMI lost some momentum during July, but that shouldn’t take away from an otherwise strong month of data. Business activity grew at a rate well above its historical average, and businesses remained extremely optimistic towards their growth prospects over the next 12 months, supporting continued job creation across the region.
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“However, worrying inflation trends lingered, with input costs rising at a survey-record rate due to ongoing supply chain disruptions.
“These are particularly acute on the manufacturing side, but spillovers into services are also being recorded.
“Consequently, firms raised their selling prices to an extent only surpassed in the survey history by that seen in June. The tolerance of Yorkshire & Humber business clients to these substantial price hikes will surely be tested in the coming months if these trends persist.”