First increase in employment in county in nine months

Employment in Yorkshire has risen for the first time since the Covid-19 lockdown, according to a new survey.
Richard Topliss, chairman of the NatWest North Regional BoardRichard Topliss, chairman of the NatWest North Regional Board
Richard Topliss, chairman of the NatWest North Regional Board

The headline NatWest Yorkshire & Humber Business Activity Index, which measures the combined output of the region’s manufacturing and service sectors, registered 53.8 in December, up from 51.7 in November.

The latest reading signalled a solid expansion in Yorkshire business activity, with the rate of growth accelerating. The faster rise in output helped to support a slight increase in employment following nine months of decline. There were also signs of improving demand, with new orders growing at the quickest rate of all the 12 UK regions.

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Private sector firms in Yorkshire reported an increase in new business during December. The rate of expansion accelerated from November’s five-month low and was the quickest across each of the 12 UK regions. Manufacturing firms registered a faster increase their service-providing counterparts.

Although Yorkshire businesses remained confident about the one-year outlook for activity, the degree of positivity softened in December. Sentiment fell to the weakest level since June and was only slightly stronger than the national average, with both manufacturers and services firms less optimistic than in November.

Private sector firms in Yorkshire recorded a slight increase in volumes of outstanding business in December. The result followed the first decline for three months during November. The expansion was driven solely by manufacturing firms while service providers posted a marginal contraction.

Cost burdens faced by Yorkshire firms continued to rise markedly in the latest survey period. The rate of input price inflation accelerated sharply to the quickest since August 2018. Anecdotal evidence indicated that the increase in costs was driven by higher prices for metals and hygiene products amid shortages.

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Richard Topliss, chairman of the NatWest North Regional Board, said: “The latest PMI data further highlight the robust recovery that the Yorkshire & Humber private sector has experienced since the initial coronavirus 2019 (Covid-19) lockdown, with both output and new orders rising solidly in December. Demand conditions have now improved to such an extent that businesses are regaining confidence around hiring, and that was reflected by a renewed, albeit slight, increase in employment.

“On a slightly less positive note, confidence towards the 12-month business outlook slipped to a six-month low, but optimism remains historically elevated. It will be interesting to see how the economy responds with the new national lockdown.”

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