Business growth across the East Midlands has slowed as sales price inflation hits record rates.
According to the latest NatWest PMI monthly survey business confidence in the region is at its lowest since the height of Covid in January 2021 mirroring a national drop in business optimism.
The seasonally adjusted index for April showed that while firms said client demand had strengthened, higher prices and less spending power among the general public meant the rate of growth was the slowest for three months.
There was also a slower expansion in new business during April, according to NatWest.
The rate of growth eased notably from March and was the slowest in the current 14-month sequence of growth. The pace of increase was also softer than the 海角视频 average.
However the April data signalled hopes of recovery from the pandemic and the release of new products supported optimism.
That said, the degree of confidence slipped to the lowest since January 2021 as higher costs dampened client demand.
East Midlands firms said they had also taken on more staff to help meet rising orders and efforts to replace voluntary leavers.
Most Read
But the rate of job creation softened to the slowest since October, and was weaker than the 海角视频 average.
Although raw material costs softened slightly from March, the rate of inflation was among the quickest on record and sharper than the 海角视频 average.
As well as upticks in wage bills, firms stated that greater fuel and material costs pushed up expenses.
The price of finished products also continued to rise at the sharpest rate on record.
Companies often noted that greater charges were due to the pass-through of higher costs to clients.
John Maude, who sits on the NatWest Midlands and East Regional Board, said: “April data indicated a slower upturn in business activity across the East Midlands private sector.
“The expansion was sharp, however, as firms worked through incoming new business.
Don’t miss
“That said, underlying data indicated greater challenges for companies. New orders rose at the slowest pace for 14 months as client demand was dampened by soaring prices and lower disposable incomes.
“Although job creation remained strong, labour shortages and hikes in wages weighed on employment growth.
"Meanwhile, inflationary pressures surged. With input prices rising at one of the fastest rates on record, firms sought to pass on costs to clients through the steepest increase in charges in over 22 years of data collection.
“Concerns regarding higher prices and the impact on demand dragged output expectations to their lowest since January 2021."
Sign up for your free East Midlands newsletter and follow us on LinkedIn
Email newsletters
BusinessLive is your home for business news from across the East Midlands including Leicestershire, Nottinghamshire, Derbyshire and Lincolnshire.
Click through here to sign up for our email newsletter and also view the broad range of other bulletins we offer including weekly sector-specific updates.
We will also send out 'Breaking News' emails for any stories which must be seen right away.
For all the latest stories, views and polls, follow our