The East Midlands economy experienced the sharpest drop in output since February 2021 last month, while business confidence slumped to its weakest since April 2020, according to the latest NatWest business survey.
However the grim findings of the latest seasonally adjusted Business Activity Index were slightly helped by suggestions that the rate of cost inflation had eased to a ten-month low.
According to its results East Midlands businesses said the decline in output was due to the impact of inflation on customer purchasing power, with client demand weakening further. The fall in activity contrasted with the UK average which pointed to a modest expansion in output.
