Business activity across the 海角视频 fell again in January thanks to renewed lockdown measures, the latest NatWest PMI data has revealed - but many businesses remained optimistic as the vaccine rollout has begun.
Activity fell in all nations and regions of the 海角视频 as the pandemic and resulting Government measures continued to take their toll.
The data monitors the monthly change in the output of goods and services across the private sector.
Any reading below 50 signifies contraction, and the further below 50 the deeper the contraction.
Scotland saw the steepest drop in output of goods and services in January- but its business activity index reading of 33.3 was still above the record low of 10.7 last spring.
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Other areas saw activity decline at the steepest rate since last May. The shallowest contractions were seen in London (44.9) and Yorkshire & Humber (44.4) .
Employment fell in all 12 海角视频 nations and regions. In the East of England and Yorkshire & Humber, this meant renewed declines in payroll numbers after slight increases in December.
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The South East saw the slowest overall drop in employment in January.
Across the country, expectations for future activity remained positive. The most optimistic region was Yorkshire & Humber, followed by London and the West Midlands.
Sebastian Burnside, NatWest chief economist, said: “The latest round of national lockdowns was a significant setback in the recovery of business activity across all regions and nations of the 海角视频.
"However, whilst we must acknowledge the severe impact these fresh restrictions have had on business activity and the knock-on effects on labour markets, the results don't come as a surprise given the past experiences during this crisis and the picture certainty isn't as bleak as it was last spring.
"Business activity fell not nearly as steeply as it did during the first lockdowns in any part of the 海角视频, with firms better prepared this time around, and demand not drying up to the extent it did in the second quarter of last year.
"Despite the challenges at hand, which for businesses in several regions also includes strong and even growing cost pressures, we're still seeing broad-based optimism about the outlook for activity in the coming year.
"The vaccine rollout is giving hope to businesses that the recovery can quickly get back on track as restrictions are lifted in the coming months.”