East Midlands business activity growth slowest for six months

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The NatWest East Midlands Growth Tracker – 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 50.8 in June, down from 52.3 in May, to signal only a marginal expansion in output at East Midlands firms.

Moreover, the pace of growth was the slowest in six months. Companies often noted that greater output was linked to backlog depletion, with new business contracting for the first time in 2024 so far.

East Midlands businesses signalled a renewed fall in new business during June, thereby ending a five-month sequence of expansion. The decrease in new orders was solid overall, and the fastest since November 2023. Anecdotal evidence suggested that the drop related to weaker client demand, with growing hesitancy among customers to place orders.

June data indicated further positive expectations regarding the outlook for output over the coming 12 months at East Midlands firms. Companies stated that investment in new products and service lines, alongside hopes of a stronger sales environment buoyed business confidence. The degree of optimism was below both the long-run series and UK averages.

Dipesh Mistry, Chair of the NatWest Midlands and East of England Regional

 link source - East Midlands Business Link General https://www.eastmidlandsbusinesslink.co.uk/mag/wp-content/uploads/2024/07/Dipesh-Mistry.jpg

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