Yorkshire business activity growth reaches nine-month high

Latest survey data found that among the 12 monitored UK regions, Yorkshire and Humber was joint-top in terms of overall business activity growth in March, matching that seen in the South West.

The NatWest Yorkshire & Humber PMI Business Activity Index, a seasonally adjusted index that measures the month-on-month change in the combined output of the region’s manufacturing and service sectors, increased to 64.3 in March, from 63.1 in February.

Furthermore, the expansion was one of the fastest since data were first collected over 25 years ago.

A sharp increase in demand for goods and services provided by private sector firms in Yorkshire and Humber was sustained in March, with the expansion broadly matching that seen in the previous month.

Of the 12 monitored UK regions, only London posted a faster increase in new orders over the month.

Richard Topliss, chair of NatWest North Regional Board, said: “Survey data was once again broadly positive for Yorkshire and Humber businesses in March, with activity levels rising at the fastest pace for nine months and accelerating further from the Omicron-induced sluggishness we saw last December and at the beginning of the year.

“In fact, the latest expansion was stronger than any seen prior to the onset of the COVID-19 pandemic in early-2020.”

Survey data showed a considerable improvement in new business at service providers, although manufacturing new orders also rose sharply.

Improving activity levels at clients were typically mentioned by panellists, while some companies reported higher investment activity.

Private sector companies in Yorkshire and Humber remained strongly optimistic towards the outlook in March and were much more upbeat than their counterparts in any other monitored region.

Investment plans, expectations of stronger demand and a continued recovery in economic activity globally from the pandemic were cited as reasons to be bullish. That said, the level of confidence slipped for a third month running to its lowest since last September.

Private sector companies in Yorkshire and Humber increased their staffing numbers at a record rate for a second month in a row in March (data were first collected in 1997), with the pace of job creation marginally surpassing the previous high seen in February.

Company growth and efforts to expand capacity were reasons cited by survey respondents that boosted their employment.

Latest survey data highlighted continued pressure on business capacities in Yorkshire and Humber, as the level of outstanding work increased for a thirteenth month running in March.

Staff shortages and supply issues were linked with the increase in outstanding business.

The rate of backlog accumulation was broadly in line with that seen across the UK as a whole, but slowed since February to the weakest in three months.