Growth returned sharply and accelerated across the Yorkshire and Humber economy last month.
The seven-month low of September was wiped out in October with a nearly five-point rise in NatWest’s Yorkshire & Humber business activity index, the strongest rise since June.
Improving demand conditions and strengthening operational capabilities have reportedly led to higher levels in the manufacturing and services sectors.
The new job arrived stronger than had been seen, with a positive trend in employment continuing. The number of employees increased for the ninth consecutive month, with the rate of job growth peaking in four months.
Richard Topliss, NatWest North Regional Council Chair, said: “The growth of the Yorkshire & Humber private sector economy was accelerated again in October, a positive result after three consecutive months of slowing growth.
There is no better time to keep up to date with the economic and commercial news of your region. By subscribing to our daily newsletters, breaking news alerts by email and weekly roundups from all major industries, you get our journalism directly by email. To subscribe, learn more and see all our newsletters, follow the link here
“The retirement in October was also marked, and is the fastest in four months. Businesses have linked higher levels of activity to greater market confidence, stronger demand for their goods and services, as well as enhanced operational capabilities. Indeed, we saw continued strong employment growth in October, which bodes well for the near-term economic outlook in the region.
“However, supply problems were still widespread and exerted enormous upward pressure on prices in October. Input and output price inflation rates reached unprecedented levels as companies in the region were hit by the shortage. global supply and rising energy prices “.
Backlogs of work rose for the eighth consecutive month, outpacing the rest of the UK.
On costs, the fastest increase since data was first collected to form the seasonally adjusted index in 1997.
Input prices have increased significantly for both producers of goods and service providers, although the rate of increase has been particularly high in the former.
Energy costs, along with commodity and shipping prices, have often been cited as sources of inflationary pressures.
As a result, prices charged for goods and services increased at a rate not seen in more than two decades of data collection during the month. Of the 12 monitored areas in the UK, only Northern Ireland and Wales experienced higher inflation rates.
Once again the level of trust was the UK’s highest in Yorkshire and the Humber.
Expected market share gains, pandemic-backed recovery efforts and rising workloads were cited as reasons for the bullish growth forecast.