North East businesses saw another drop in output in the early part of 2023, extending the downturn to seven months.
Figures from NatWest North East PMI 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 - show the region suffered a slightly stronger decline than the UK average. And while there were signs of growing confidence among firms in January - the Future Activity Index rising to its highest level since March 2022 - the North East still had the second weakest 12-month outlook from the 12 UK regions.
Some of that optimism may have stemmed from increased competitiveness and new customer wins cited by firms at the start of the year. Researchers identified that the North East was one of only four UK regions to record growth in demand in January along with London, the South East and the East of England.
