The service sector is driving the continued economic upturn as manufacturers struggle with continuing supply chain issues.
The Natwest Yorkshire and Humber Business Activity Index showed continued sharp growth - the strongest for five months - but those behind the analysis said indications are it is masking stagnant output.
Inflation is also flying high, with prices hiked at a record rate to combat materials, energy and transport costs.
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Heather Waters, of the North Regional Board at NatWest, said: “At face value, a reading in the headline index of 57.3 suggests private sector business activity across Yorkshire & Humber is increasing at a sharp and healthy pace. In fact, of the 12 monitored 海角视频 areas, only three others saw quicker upturns – the North West, Wales, and London.
“However, the survey did highlight some worrying trends beneath the bonnet. The biggest concern is regarding the wide divergence in performance by sector. Activity growth in November was wholly driven by services as manufacturing output was broadly stagnant. "This pins the fate of the broader recovery in a precarious position as continued growth is dependent on one part of the economy given that the supply- related disruptions impeding manufacturers don’t look like fading any time soon.”
Latest survey data signalled a further improvement in demand conditions faced by regional firms in November. As has been the case throughout the majority of the year-to-date, private sector employment across Yorkshire and the Humber increased strongly during November.
Greater recruitment was reportedly due to rising workloads, as well as efforts to boost capacity.
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With manufacturing easing, backlogs of work were accumulated to the least extent since March.
Businesses contributing data registered the fastest rise in their operating expenses on record - since 1997 - with rates of inflation quickening at both service providers and manufacturers.
How NatWest is supporting BusinessLive
NatWest is the national partner of BusinessLive.
The banking group is teaming up with BusinessLive on a series of events throughout the year aimed at entrepreneurs and business leaders.
Alongside a wide range of banking services, NatWest offers businesses specialist sector knowledge in areas such as manufacturing and technology, as well as access to specialist entrepreneurial support.
According to survey respondents, increased prices for a wide range of raw materials were exacerbated by rising energy and transport costs leading to the steepest increased on record, surpassing October’s previous high.
Confidence in future activity remains high, with the region home to the most optimistic business leaders in the 海角视频. Strategic changes, the continued economic recovery from the pandemic and stronger demand were all cited as reasons to expect stronger growth over the coming year.
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