Latest NatWest Regional PMI survey shows North East leading the way12 Oct 2020 06:20
Business activity rises again across UK - but momentum slows
Business activity continued to increase across the UK in September as the country continued to recover from the pandemic- but job numbers fell and the rate of improvement slowed amid ominous signs of a second wave.
The latest NatWest Regional PMI survey, which tracks the monthly change in the output of private sector goods and services, showed a loss in momentum on the recovery seen in August.
Each region is given an index reading based on the survey, with any number over 50 showing growth and with higher numbers showing faster growth.
Payroll numbers continued to fall across the country in September, with the slowest fall in employment seen in the North East. NatWest said: “Though rates of job shedding generally eased since August, data still showed sharp decreases in staffing levels in some regions such as the West Midlands
The English regional economies have seemingly fared better in the initial reopening stage of the recovery, however even here we are starting to see signs of a loss of momentum amid the introduction of local restrictions and the withdrawal of government support such as the 'Eat Out to Help Out' scheme.
"Rates of job shedding slowed across the majority of areas amid the first signs of capacity pressures beginning to emerge, but of course the outlook for the labour market is still clouded in uncertainty with firms set to transition away from the current job retention scheme.