North East companies saw a third successive month of expansion in May – but they also saw the first fall in new business all year.
That was the finding of the headline NatWest North East PMI Business Activity Index, the seasonally adjusted index that measures the month-on-month change in the combined output of the region’s manufacturing and service sectors.
The index fell from April’s 21-month high of 55.8 to 51.0, indicating a slower rate of growth, and having been the second-strongest performer of 12 UK regions in April, the loss of momentum in May saw the North East slip to eighth in the rankings. A slight fall in new work weighed on output in May, leading to a renewed decline in employment. On a more positive note, input price inflation eased to its weakest rate since November 2020, despite ongoing wage pressures.
