Output growth quickens in the East Midlands, but demand softens in May

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The headline NatWest East Midlands PMI® Business Activity Index – a seasonally adjusted index that measures the month-on-month change in the combined output of the region’s manufacturing and service sectors – posted at 52.3 in May, up from 51.2 in April, to signal a modest expansion in output at East Midlands private sector firms.

The upturn was linked to a further rise in new orders and a sustained improvement in demand conditions. The rate of growth in activity was the fastest for three months, albeit slightly slower than both the series and UK averages.

East Midlands private sector firms signalled a fifth successive monthly expansion in new business during May. Anecdotal evidence suggested the rise in new orders was due to sustained customer demand. That said, the pace of growth slowed to only a fractional rate, as some firms highlighted a sluggish sales environment.

The rate of increase in new orders was slower than both the long-run series trend and UK average.

May data signalled further upbeat expectations among East Midlands private sector firms. Companies stated that efforts to diversify revenue streams, greater advertising to bring in new clients and hopes of stronger demand conditions supported optimism. Nonetheless, the degree of confidence

 link source - East Midlands Business Link General https://www.eastmidlandsbusinesslink.co.uk/mag/wp-content/uploads/2024/06/pmi-may-24.png

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