Stronger exports helped to push up private business activity in the East of England at the fastest rate in two years in April whilst firms remained upbeat on prospects for the next 12 months, according to a key survey or purchasing managers. A NatWest East of England 'export climate index' rose for the third month running, showing the strongest improvement in export demand for firms in the region for 12 months. All five of the region’s top export markets – the Netherlands, US, Germany, France and Ireland – saw higher output.

Meanwhile the overall NatWest East of England PMI business activity index rose to 53.2, up from 51.3 in March, as inflows of new business and employment were stable. However the survey also pointed to a jump in input cost inflation, prompting another strong rise in prices charged by firms for goods and services. Confidence was linked to new products, strong new business pipelines and a market recovery despite the coming election. A 'future activity index' remained well above its long-run trend level and the East remained the third most optimistic UK region. Rashel Chowdhury, NatWest Midlands and East regional board, said: "The stronger increase in activity in April was welcome news, but the jump in input price inflation is a concern and may partly explain the softening of the 12-month outlook and lack of jobs growth. That said, the bigger than usual increase in the National Living Wage may be partly responsible for the spike in costs in April, so we may see a correction in May. And despite easing to a three-month low, output expectations remain relatively strong."

Separately, a sharp hike in the number of start-up businesses in East Anglia – the highest of any UK region outside London - and the end of recession, should give the local economy a much-needed boost heading into the summer months, but business owners should remain cautious, says the Eastern branch of R3. Its figures show 10,405 businesses were set up in East Anglia in April, a rise of 27 per cent on the previous month and 47 per cent higher than a year ago.