Growth in activity but concerns remain... Private sector activity rises in April despite no change in new business
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rowth of private sector business activity in the South East resumed in April and there was a modest rise in employment, according to the latest NatWest PMI® data. Less positively, the volume of new business received was broadly flat for the second month running and companies remained relatively subdued regarding the 12-month outlook. In a sign of spare capacity, the volume of outstanding business fell at the fastest rate since July 2016. The headline NatWest South East Business Activity Index – a seasonally adjusted index that measures the com-
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SURREY BUSINESS
bined output of the region’s manufacturing and service sectors – recovered to 51.7 in April, having dropped to 50.0 in March. The latest figure signalled a modest rate of expansion in output and was above the UK figure (50.9), but well below its long-run trend level of 54.9. Sector data indicated that the upturn in overall output was driven by the manufacturing sector, while services activity was broadly stable. Demand conditions remained stagnant in April, as the volume of incoming new business was broadly unchanged for the second successive
KEY FINDINGS • Companies support output by cutting backlogs • New order intakes remain broadly unchanged • Output expectations among weakest since 2012 month. This reflected weakness in both the manufacturing service sectors. Export conditions remained challenging, with overall growth in the region’s largest international markets
