Companies in the East Midlands experienced a “lacklustre” end to the decade - but business owners are feeling more optimistic about the future, a new report has found.
The latest NatWest East Midlands PMI report published today, found that in December, private sector firms across the region saw a further fall in business activity, amid a continued drop in client demand.
However, the fall was marginal compared to other months and the study said that firms are more confident regarding output over the next 12 months.
In fact, the degree of optimism in the East Midlands is the highest of the 12 海角视频 regions monitored by NatWest.
The NatWest PMI reports are compiled by IHS Markit from responses to questionnaires sent to companies that participate in its 海角视频 manufacturing and services surveys.
In the East Midlands, the report’s Business Activity Index – a seasonally adjusted index that measures the combined output of the region’s manufacturing and service sectors signalled a faster, albeit only marginal, decrease in output compared to November.
According to the report, firms continued to state that the drop in activity was linked to Brexit uncertainty which has led to hesitancy among clients in placing orders.
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The rate of contraction was faster than the 海角视频 average, with both manufacturers and service providers noting a quicker decrease.
Workforce numbers across the East Midlands also continued to fall in December as firms reported further efforts to reduce costs through the non-replacement of voluntary leavers. However, the rate of decrease was the slowest for five months.
But on a positive note, the report found that business confidence was at its strongest since September, 2018, linked to access to new export markets and the launch of new products.
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John Maude, from the NatWest Midlands and East regional board, said: “Private sector firms across the East Midlands signalled a lacklustre end to the decade, with activity decreasing at a faster rate and new business falling further. As such, pressure on capacity was reduced and payroll numbers were cut again.
“Nevertheless, firms remained optimistic towards the outlook for output over the coming year, with confidence reaching the strongest since September, 2018.
“Some companies noted that recent political developments had reduced delays and hesitancy in launching new products."