Latest NatWest Regional PMI survey data showed business activity rising almost universally across the
The PMI Business Activity Index is the first fact-based indicator of regional economic health published each month, tracking the monthly change in the output of goods and services across the private sector. A reading above 50 signals growth, and the further above the 50 level the faster the expansion signalled.
Business activity growth was recorded in 11 of the 12 monitored nations and regions, led by
Demand
Inflows of new work rose across most regions and nations in March, the only exceptions being Yorkshire & Humber and the North East where data showed modest and marginal decreases respectively. Leading the way was
Prices
Input price inflation eased almost everywhere in March, with only
Average prices charged for goods and services continued to rise fastest in
Capacity
The fastest rate of job creation in March was recorded in
As has been the case in each of the past four months,
Outlook
Business expectations remained positive in all areas in March, with confidence levels generally exceeding their long-run series averages. The
PMI survey coverage in
'The picture for the
'
'Encouragingly, new orders are now rising across most regions and nations, signalling that demand has turned a corner since last year, although for the most part businesses are still seeing only modest growth in sales.'
'The picture for the labour market is less clear-cut, with employment increasing in March in a little over half of the 12 monitored regions and nations. Whilst businesses generally expect activity to rise in the coming year, with confidence levels looking solid across the board, falling backlogs of work in most areas point to low pressure on business capacity, thereby giving firms more room to manoeuvre when it comes to hiring policies.'
'Another factor is that, even after three years of steep cost increases, businesses' input prices are still rising at a relatively fast rate due in large part to wage demands. Cost pressures did at least soften slightly almost everywhere in March, which goes some way to easing concerns over sticky inflation.'
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PMI report
Contact
NatWest
Regional Campaign Manager
Jonathan.renniew@natwest.com
Economics Associate Director
+44 1491 461 009
phil.smith@spglobal.com
Sabrina Mayeen
Corporate Communications
+44 7967 447 030
sabrina.mayeen@spglobal.com
Notes to editors
Methodology
The NatWest
Survey responses are collected in the second half of each month and indicate the direction of change compared to the previous month. A diffusion index is calculated for each survey variable. The index is the sum of the percentage of 'higher' responses and half the percentage of 'unchanged' responses. The indices vary between 0 and 100, with a reading above 50 indicating an overall increase compared to the previous month, and below 50 an overall decrease. The indices are then seasonally adjusted.
The headline figure for each region is the Business Activity Index. This is a diffusion index calculated from a single question that asks for changes in the volume of business activity (at service providers) or output (at manufacturers) compared with one month previously. The Business Activity Index is comparable to the
Underlying survey data are not revised after publication, but seasonal adjustment factors may be revised from time to time as appropriate which will affect the seasonally adjusted data series.
The survey data for March were collected
For further information on the PMI survey methodology, please contact economics@spglobal.com.
About PMI
Purchasing Managers' Index (PMI) surveys are now available for over 40 countries and also for key regions including the eurozone. They are the most closely watched business surveys in the world, favoured by central banks, financial markets and business decision makers for their ability to provide up-to-date, accurate and often unique monthly indicators of economic trends. To learn more go to www.spglobal.com/marketintelligence/en/mi/products/pmi.
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