Yorkshire and Humber businesses have seen the most rapid rise in new work since records began, as the region’s strong recovery continues.
Analysis for the NatWest Business Activity Index has found an unprecedented increase in fresh work supporting faster growth, with confidence remaining buoyant.
Data stretching back almost a quarter of a century cannot throw up a higher inflow of first time orders and instructions, keeping the rate of acceleration the second highest in the UK.
March had seen a seven-and-a-half year high, but April has eclipsed it.
The improvement in demand conditions was broad-based at the sub-sector level, with service providers marginally outperforming manufacturers. Anecdotal evidence indicated that firms’ clients were gaining confidence that the worst of the pandemic was over.
Richard Topliss, chair of NatWest North Regional Board, said: "April PMI data revealed another strong performance by Yorkshire & Humber's private sector as the recovery from the Covid-19 pandemic continued to gather pace.
"With an ever-increasing likelihood of a strong economic recovery in the second half of this year, firms' clients have gained enough confidence to commit to future projects and that was exemplified by a survey-record increase in new business during April. Consequently, activity growth accelerated to the quickest since last August and that upward trajectory is likely to continue in the months ahead.
“The one remaining concern for Yorkshire & Humber businesses is raw material shortages, which have caused a severe increase in input costs over recent months. Fortunately, improving demand conditions have allowed the pass-through of these additional costs to clients, and that should remain feasible for the time being, given that Covid-19 restrictions are due to relax further in the UK."
The seasonally adjusted index’s month-on-month change in the combined output of the region’s manufacturing and service sectors – registered 64.3 in April, up from 60.2 in March. Optimism was among the strongest ever recorded, since July 2012, with confidence levels higher than in any of the other 11 monitored UK regions.
Hiring activity across Yorkshire & Humber's private sector continued to gather pace in April. Notably, the rate of job creation was the sharpest since March 2015. The rise in employment was broad-based but led by service providers.
Following March's rebound, there was a further increase in outstanding business at regional firms in April. Moreover, the rate of accumulation accelerated to the fastest since the series began in November 1999. The rise was the fourth-quickest across the 12 covered UK regions.
Cost burdens faced by Yorkshire and Humber businesses continued to rise sharply in April. The rate of input price inflation accelerated for the third month running to the quickest since September 2017.
In line with a further rise in input costs, private sector firms in Yorkshire & Humber increased their average output prices in April. Despite the rate of charge inflation easing from March's recent high, it remained far stronger than the historical average. At the sub-sector level, the rise in output prices was led by manufacturing firms.
