The recovery in the North East economy is continuing but signs are growing that the region is behind left behind by other parts of the country, a new survey suggests.
The latest NatWest North East Business Activity Index, which measures the month-on-month change in the region’s manufacturing and service sectors - rose slightly from 55.0 in March to 55.2 in April, indicating a sustained improvement in output at private sector businesses.
But the improvement was the lowest of all 海角视频 regions and both business confidence and job numbers were also significantly below the national average.
The April data indicated a second successive rise in new business received by North East firms while employment levels rose for a second month in a row after more than two years of consistent reductions.
Private sector businesses in the North East were optimistic in their year-ahead outlook but the overall degree of optimism in the region was the second-lowest of all 海角视频 regions monitored, ahead only of Northern Ireland.
The April data also signalled that private sector firms faced another substantial rise in prices, and the the rate of inflation accelerated from March to the fastest since data became available in January 2001.
Richard Topliss, chairman of NatWest North Regional Board, said: “North East private sector business conditions improved further in April, as activity expanded at a sharp pace for the second month in a row.
“With national lockdown measures easing further during April, firms also noted a further upturn in incoming new work. At the same time, pressures on supply chains remained elevated, with survey participants reporting a record rise in input prices for the second successive month.
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“Anecdotal evidence linked this to ever-increasing raw material and freight prices.
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“Nevertheless, local firms were optimistic regarding the year-ahead outlook for activity, with confidence underpinned by hopes that the market recovery would continue as the vaccination rollout remains successful and remaining Covid-19 restrictions are gradually lifted.”
The Business Activity Index - which is compiled from responses to questionnaires sent to selected North East companies - has been published ahead of a key few days for the 海角视频 economy.
Following today’s re-opening of indoor venues after the latest coronavirus lockdown, tomorrow will see the release of the latest unemployment figures, while Wednesday’s sees the publication of inflation data for April.
Last week Chancellor Rishi Sunak warned the 海角视频 faces a “long and difficult” recovery from Covid-19 but insisted it is “beyond doubt” the Government’s economic plans are working.