Monday 27th June 2022
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Business activity slows but firms remain upbeat

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The growth in private business activity in the region slowed to a five month low in May but firms still saw a moderate rise in new orders and many remain upbeat on the outlook for the next 12 months, according to a key survey of purchasing managers.

The NatWest East of England PMI business activity index fell from 57.1 in April to 51.7 in May; the second month running the growth rate has slowed. Although confidence weakened as economic concerns mount, a future activity index for the region covering the next 12 months registered well over 60 (where 50 denotes growth).

Firms linked optimism to improving market conditions, new client wins, launches of new products and stronger demand. Employment also rose strongly in May although the pace of recruitment growth eased and the backlog of work outstanding in the region fell modestly. Meanwhile, costs continued to rise steeply with input price inflation at a near-record high due to rising energy, labour and material costs along with supply shortages and the war in Ukraine. John Maude, NatWest Midlands & East regional board, said: "The slowdown across the East of England's private sector was reflective of the growing global uncertainty and persistent inflationary pressures.”

Last Updated ( Tuesday, 14 June 2022 06:16 )