South West Business Activity Outperforms Most Other UK Regions During February 2025
The NatWest South West Growth Tracker showed a slight increase in business activity across the region in February (having also showed an uptick during the previous month). Only firms in the Midlands, out of 12 UK regions, were more upbeat than the South West about the year-ahead outlook.
For the fuller picture please read the article below issued by Insider News today.
Roger Mundy, Managing Director, Beardsley Theobalds, 12th March 2025
South West business activity continues to expand slightly in February - NatWest
The NatWest South West Growth Tracker showed that business activity across the region rose slightly for the second straight month in February.
According to the tracker, the marginal uptick in output occurred despite relatively muted demand conditions, with firms registering a further drop in new business.
At the same time, it noted the input costs continued to rise sharply, which led firms to shed staff at a quicker pace, adding that firms expressed much greater optimism around the 12-month outlook for output.
The headline South West Growth Tracker 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 – stood at 50.2 in February, which was unchanged from January. It signalled a further slight rise in output, with growth of output often attributed to investment in new sites and the commencement of new projects.
Faye Long, chair of the NatWest South West Regional Board, said: "Latest PMI data indicated that South West private sector firms saw a further slight uplift in overall activity levels in February, but demand conditions remained sluggish overall.
"While the current climate looks subdued, particularly with further job cuts, it was encouraging to see business confidence rebound in February. Moreover, out of 12 UK regions, only firms in the Midlands were more upbeat about the year-ahead outlook. Inflation remains a key concern, however, with the latest survey showing price pressures stuck at historically elevated levels."
