London leads the way as business conditions brighten across most parts of the UK
The latest NatWest Regional Growth Tracker showed signs of improving business conditions across most parts of the UK in August. Output of goods and services rose in ten of the 12 nations and regions covered by the survey, generally supported by higher inflows of new business, while growth expectations for the year ahead also improved in the majority of cases.
The Tracker – which surveyed businesses operating in the manufacturing and services sectors – showed business activity rising in ten out of 12 UK nations and regions in August. This was up from seven in July and the most since September last year.
For the second month in a row, business activity growth was led by London, where it reached a 16-month high. The East of England, South West, North East, East Midlands and South East also saw solid increases in output, while there were more modest rises in the West Midlands, North West, Wales and Scotland.
Commenting on the Tracker’s findings, Sebastian Burnside, NatWest chief economist, said: “Businesses in most parts of the UK enjoyed a better month in August. London continued to lead the way, though the East of England, South West and North East are also worthy of special mentions having seen solid rates of growth.
“Encouragingly, the Tracker’s forward-looking indicators have generally improved. Alongside an increase in new business in most areas, we saw stronger business expectations in the majority of cases.
“Efforts to mitigate rising costs continue to be reflected in adjustments to workforce numbers. However, taking a glass half full perspective, most regions did see employment fall more slowly than the month before.
“Price pressures remain stubbornly highly across the UK, with costs rising more quickly than the long-run average in all areas.”