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Yorkshire & Humber business look ahead with optimism, new survey shows

Businesses across Yorkshire and Humber looked to the year ahead with optimism last month, maintaining staffing levels to gear up for growth, a new study has revealed.

The most recent Growth Tracker data from NatWest, which measures month-on-month change in the region’s manufacturing and service sectors, showed that the region bucked the trend in local workforce numbers, with firms at national level shedding jobs in November.

The data showed a modest decline in demand for Yorkshire & Humber goods and services, with panel member reporting cautious client spending and weakness across European markets which had dented sales.

Companies in the region looked towards the future with optimism, with businesses expecting activity levels to rise over the next 12 months, with hopes of new business wins, entry into new markets, strategic changes, investment and stronger economic conditions. However, business confidence slipped to a 55-month low, with Yorkshire & Humber companies ranking 10th out of the 12 monitored parts of the UK for year-ahead growth expectations.

The headline Yorkshire & Humber PMI Business Activity Index posted 48.0 for November, comparing with a reading of 49.5 in October, indicating lower private sector output when compared to the previous month, but the contraction was only modest overall. While private sector employment fell across the UK as a whole in November, the Yorkshire & Humber jobs market showed resilience with workforce numbers remaining steady.

Some companies lowered staffing levels in response to employment changes announced in the Autumn Budget, but this was offset by other companies carrying out expansion plans.

Private sector companies in Yorkshire & Humber registered an increase in operating costs during November – a factor that has been the case every month since June 2020 – with rising costs including fuel, transport, insurance, raw materials and labour. In response, companies raised their own charges but were less aggressive when setting prices.

Malcolm Buchanan, chair of the NatWest North Regional Board, said: “The Yorkshire & Humber economy has generally ebbed and flowed this year, but one thing that has remained constant is local firms’ confidence that their businesses are on track for growth. We saw this again in November, with expectations firmly in positive territory.

“As such, pressure to cut back staffing capacity was defied, which makes the region stand out as employment actually fell across the UK as a whole in November. One thing to monitor is the uptick in costs, as this may make it more challenging for companies to keep their own charges competitive.”

Original artice – https://business-live.co.uk/all-about/yorkshire-humber

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