March’s NatWest Regional Growth Tracker showed improved business growth in more regions of the UK at the end of the first quarter.
However, the the majority of businesses are still being affected by wider economic uncertainty.
The South West and London led regional growth with upturns seen in South East and Yorkshire & Humber during March.
The Tracker surveyed businesses operating in the manufacturing and services sectors across 12 regions of the country from12-27 March 12.
NatWest Chief Economist Sebastian Burnside said: “According to March’s report, London continued to lead in March, with the South West also making a sizeable contribution to UK economic growth. We saw growth broaden out slightly, as both the South East and Yorkshire & Humber enjoyed renewed upturns in business activity.
“Market conditions remain challenging and recent tariff announcements suggest we could see continued challenges in the coming months.
“Firms up and down the country are looking to control costs, which is feeding through to staffing decisions.
“Price pressures remain high across the board, though they did at least subside slightly in most areas in March, on the eve of the changes to national insurance contributions and national minimum and living wages.”
As witnessed in January and February, most regions in March experienced a dip in business activity as inflationary pressures remained elevated, with Scotland and Northern Ireland the worst affected.
The NatWest Regional Growth Tracker Business Activity Index is the first fact-based indicator of regional economic health published each month. A reading above 50 signals growth, and the further above the 50 level the faster the expansion signalled.
Of the 12 UK regions, only five posted above 50. The average across the UK for March was 51.5.
The South West and London led regional growth with upturns seen in South East and Yorkshire & Humber during March.
The Tracker surveyed businesses operating in the manufacturing and services sectors across 12 regions of the country from12-27 March 12.
NatWest Chief Economist Sebastian Burnside said: “According to March’s report, London continued to lead in March, with the South West also making a sizeable contribution to UK economic growth. We saw growth broaden out slightly, as both the South East and Yorkshire & Humber enjoyed renewed upturns in business activity.
“Market conditions remain challenging and recent tariff announcements suggest we could see continued challenges in the coming months.
“Firms up and down the country are looking to control costs, which is feeding through to staffing decisions.
“Price pressures remain high across the board, though they did at least subside slightly in most areas in March, on the eve of the changes to national insurance contributions and national minimum and living wages.”
As witnessed in January and February, most regions in March experienced a dip in business activity as inflationary pressures remained elevated, with Scotland and Northern Ireland the worst affected.
The NatWest Regional Growth Tracker Business Activity Index is the first fact-based indicator of regional economic health published each month. A reading above 50 signals growth, and the further above the 50 level the faster the expansion signalled.
Of the 12 UK regions, only five posted above 50. The average across the UK for March was 51.5.
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