The Prime Minister’s roadmap out of the lockdown and progress with the vaccine roll-out boosted business activity in the West of England last month, new data shows.
Activity among private sector firms in the region increased for the first time in six months in March, according to NatWest's latest PMI Index.
The seasonally adjusted index measures the month-on-month change in the combined output of the region’s manufacturing and service sectors.
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It registered a reading of 50.8 for the South West in March - above the 50.0 no change mark for the first time since September. However, the rate of growth was marginal and much softer than the 海角视频-wide trend of 56.4.
The amount of new orders received by private sector firms rose and a number of companies reported higher sales. Although slipping from February's record high, the level of positive sentiment towards the 12-month outlook was among the highest seen in the series history.
Companies said they hoped the easing of Covid restrictions would lead to a release of pent-up customer demand and drive an upturn in activity.
Firms in the West Country also continued to boost workforce numbers - more so than on the national level - with the rate of job creation the quickest seen since September 2017. Many companies also confirmed employees were returning from furlough.
The level of work-in-hand, but not yet completed, stabilised at South West private sector firms in March, but average input costs faced by businesses increased.
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The rate of inflation quickened to a four-year high and cost burdens rose, with companies paying out more for raw materials, such as metals, oil and components, and higher staff costs. There were also mentions of increased shipping charges having pushed up expenses.
Prices charged for goods and services by firms in the South West also rose at a faster pace in March.
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Paul Edwards, chair of the NatWest South West regional board, said: “The latest PMI data showed that the South West is starting to recover as the roadmap out of the lockdown and vaccine progress boosted market confidence and drove the first increases in output and sales since last September.
“However, rates of growth were not as strong as those seen at the national level, to suggest the region still has some catching up to do. At the same time, cost pressures continued to build, with both input costs and output charges rising at the fastest rates since early-2017 amid reports of higher prices for raw materials, transport and staff.
"Nonetheless, optimism towards the outlook remained historically sharp, and supported a renewed and solid rise in employment as companies anticipate busier months as we head into summer and restrictions are loosened further."