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Lockdown lifting starting to have 'positive impact' on º£½ÇÊÓÆµ economy as firms prepare for growth, survey reveals

PMI survey shows confidence growing but employment numbers are still depressed

People socialising in Soho, central London, after the lifting of further coronavirus lockdown restrictions in England.(Image: PA)

Lockdown lifting is starting to have an impact on the º£½ÇÊÓÆµ economy as confidence is beginning to improve, a major national survey has shown.

The latest NatWest Regional PMI data for June showed falls in output slowing in most regions, with some even showing slight growth.

But while business confidence improved, all regions saw further job losses.

The regional PMI surveys monitor the monthly change in the output of goods and services across the private sector, with any reading below 50 showing contraction.

The strongest trends in business activity were seen in the East and West Midlands, with both regions seeing a Business Activity Index reading of 50.4 - their first increases in output for four months. Activity fell in all other nations and regions, though at a slower rate than May. The worst performing area was Scotland, with an index of 37.1.

Three regions saw a rise in new business in June - Yorkshire & the Humber, the East Midlands and the West Midlands.

Employment fell in all regions for the fourth consecutive month, though the rate of decline slowed. The East Midlands saw the slowest rates of decline, followed by the North West and South East. The most marked rates of job losses were seen in the North East and London.

Business confidence improved in most parts of the º£½ÇÊÓÆµ, with Wales the most confident area.