Yorkshire and Humber business activity seeing rebound, says Growth Tracker
Private sector business activity in Yorkshire & Humber rebounded in April, according to the NatWest Regional Growth Tracker, with growth its strongest in over a year-and-a-half.
The headline Yorkshire & Humber 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 from 48.4 in March to 51.4 in April.
By moving above the 50.0 no-change mark, the headline index signalled a renewed rise in private sector output across the region. Additionally, the rate of expansion was the strongest since August 2024.
Malcolm Buchanan, chair of the NatWest North Regional Board, said: "Yorkshire & Humber businesses reported greater activity levels and a rise in confidence in April. Against a backdrop of rising price pressures and increased uncertainty, this points to a certain degree of resilience across the local economy.
"To support output, firms turned to their existing projects, as backlogged work fell sharply in April and at a rate that was unsurpassed by any of the 11 other monitored parts of the UK.
Private sector companies in Yorkshire & Humber grew more confident towards the 12-month outlook for business activity in April. The local level of optimism rose to its highest since January and was above that seen for the UK as a whole.
Regarding current demand conditions, the latest survey results signalled further weakness as new business intakes decreased for a second month in a row. Notably, of the 12 monitored parts of the UK, only Scotland saw a quicker reduction in new orders than that seen locally. The pace of decline,however, was mild, having slowed since March.
The seasonally adjusted Employment Index registered in sub-50.0 contraction territory during the latest survey period, indicating a seventeenth successive monthly fall in payroll numbers across Yorkshire & Humber. High staff expenses and reduced workloads prompted firms to lower headcounts, according to anecdotal evidence. The rate of job shedding was solid but the softest in six months.
The local trend in employment was aligned with the UK average. Only two of the 12 monitored parts of the UK saw jobs growth in April.
Mr Buchanan added: "A sustained decrease in employment points to both cost-saving efforts and capacity adjustments, but more bullish expectations for the next 12 months could help spur a recruitment revival.
"That said, surging inflationary pressures layer April's upturn with risk. Greater costs could squeeze output, particularly in manufacturing, while an increased necessity to raise selling prices comes at the cost of reduced competitiveness."
The tracker also reported a lack of pressure on operating capacities across Yorkshire & Humber once again in April as the backlog clearances continued.