Business activity in the East of England rose again in April as the easing of Covid restrictions helped the economy return.
The NatWest East of England PMI Business Activity Index – which measures the month-on-month change in the region’s manufacturing and service sectors – rose slightly from March’s score of 60.9 to 61.0 in April, signalling a fresh record expansion in business activity across the private sector.
April’s data revealed a second month of rising new orders and the region’s overall rate of growth was one of the highest seen since the survey began in 1997.
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Businesses in the region were broadly positive about their prospects for the next 12 months, though the degree of optimism fell slightly from levels seen in March.
Job numbers in the region grew at the fastest rate in three years.
But there was cause for concern as average cost burdens faced by private sector firms in the East of England rose during April, continuing the run of inflation that begun last June. The rise in input prices accelerated from that seen in March and was the highest increase seen in more than four years.
John Maude, regional managing director for NatWest, said: “April data revealed another record expansion of business activity across the East of England’s private sector, with robust growth in output and new orders recorded.
“Domestic demand rose strongly over the course of the month, driven by the reopening of leisure, hospitality and other customer-facing activities. Firms meanwhile look to be gearing up for a busy period, with the further relaxations set for May encouraging additions to headcounts.
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“That said, inflationary pressures remained of growing concern as material shortages and higher staff costs added to expenses. Firms saw backlogs increase, with difficulties obtaining inputs and transportation delays a common theme over the last few months.
“Whilst demand is expected to grow as the domestic economy continues to open as we move into the summer, we could see further constraints to supply if tighter restrictions remain across international markets.”
Figures out this morning showed that the region’s unemployment rate had fallen to 3.9%, the second lowest level in England.