Bosses across the East Midlands have reported the first upward shift in demand since last May, according to a new survey.
The monthly NatWest PMI survey for suggested business confidence in February was at its strongest since last April, as inflationary pressures started to soften.
Businesses said orders were improving and supply chain bottle-necks that had been hampering productivity since the global Covid lockdowns also seemed to be easing. However, the rate of growth was slower than the UK and long-term averages.
According to the monthly survey of managers, renewed demand for products and services – albeit a small one – brought to an end a nine-month sequence of decline. Nationally the upturn trend was more solid.
East Midlands expectations regarding the outlook also strengthened. Although still below the UK average optimism was reportedly linked to investment in new products and services, and the acquisition of new clients.
The February data indicated a second successive monthly upturn in employment across the East Midlands to meet the growing demand for products and services, and although prices were still going up, the rate of inflation softened for the third month running – to the slowest since March 2021.
That said, the pace of increase was among the fastest of the 12 monitored UK regions, fractionally slower than only London and Northern Ireland.
Rashel Chowdhury, who sits on the NatWest Midlands and East Regional Board, said: “East Midlands private sector firms signalled a renewed rise in output and new business during February, amid stronger demand conditions.
“Although only marginal, the latest data indicated an end to a sequence of contraction in business activity. Nonetheless, spare capacity was still seen across firms, as employment rose only fractionally.
“On a positive note, inflationary pressures softened again. Although still marked, rates of cost and selling price inflation slowed to the weakest in almost two years as supply chains improved and demand conditions remained subdued.
“Slower upticks partially supported stronger business confidence in the year-ahead outlook, which picked up to the highest in almost a year.”
