The NatWest survey of private businesses has the region’s economy close to growth
The Yorkshire and Humber private sector is close to a return to growth after a stabilisation of new orders during July, a new survey suggests.
The NatWest Regional Growth Tracker, which measures the output of the region’s manufacturing and service sectors, rose to 49.1 in July from 45.5 in June. Scores above 50 denote when the economy is in growth.
New orders were little changed in Yorkshire and Humber during July, the survey found, with a number of respondents indicating that customer confidence remained subdued amid market uncertainty. Non-replacement of departing staff as part of efforts to limit costs resulted in a further fall in employment, now marking 20 months of decreases in the regional workforce.
Companies reported sharp rises in input costs, particularly fuel oil and raw materials. The rate of inflation slowed markedly from the previous month, however.
Business confidence in Yorkshire and Humber fell slightly in July amid ongoing uncertainty and worries about geopolitics. But firms in the region were broadly optimistic overall for the prospects in the coming year, which was reflected in investment plans, the survey found.
Malcolm Buchanan, chair of the NatWest North regional board, said: “There were some encouraging signs from the latest Yorkshire and Humber Growth Tracker, particularly with regards to customer demand which stabilised following a period of decline amid geopolitical issues. Although still muted, the inflow of new orders was such that firms posted softer reductions in output and employment levels as the second half of the year began. Adding to the alleviation of headwinds facing firms, inflationary pressures also cooled.
“While conditions looked to be moving positively in July, firms remained only cautiously optimistic regarding the future as geopolitics continues to loom over the global economy and has the potential to throw the nascent recovery off course.”




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