Business activity in the North has fallen at its fastest rate in 18 months as fears of a recession mount, according to a closely-watched business survey.
The NatWest North East Business Activity Index, which measures changes in the region’s manufacturing and service sectors, fell for the second month in a row to a score of 43.4, singling out the North East as the weakest economy in the UK. Lower sales volumes, price pressures and recession risks sparked the steepest fall in activity since January 2021, NatWest said.
Companies in the region reported a sixth consecutive fall in winning new business and the North East’s trend for total sales was the worst of the 12 monitored UK regions. The survey also found businesses in the region reporting substantial increases in costs, with anecdotal evidence pointing to greater energy, food, insurance, staff and raw material prices.
