• Swindon & Wiltshire Economy
• Wednesday November 13 2024
• Author Name: Peter Davison

South West businesses see sales rise in October – Natwest

Demand for goods and services from the South West underpinned growth of sales and output in October, according to the NatWest Regional Growth Tracker for the South West.

The latest increase in new business was substantial and above the long-run series average, despite slowing from September’s two-and-a-half-year high, says Natwest, with local firms scaling up output as a result.

The trend for employment remained muted, however, as firms observed a lack of pressure on operating capacity. Meanwhile, cost pressures receded to their lowest in over four years but charge inflation ticked higher.

Up from 53.7 in September to 54.1 in October, the headline South West Growth Tracker 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 – highlighted a marked rate of growth.

Private sector companies indicated a sharp increase in new business intakes at the start of the fourth quarter, which they attributed to positive client appetite.

The rate of expansion retreated from September’s 30-month high, but remained among the strongest over this period and outpaced its long-run average.

The overall rate of input cost inflation across the South West slipped to its lowest in over four years, and was below its long-run average.

Companies reported greater wage bills and licence fees, but observed reduced pressure from electricity, fuel, gas and various materials including aluminium, glass, paper and timber.

Faye Long, chair of the NatWest South West Regional Board, commented: “October data showed a desirable combination of strengthening output growth and receding cost inflation across the South West.

“Even with a softer increase in sales, the region remained among the top performers of the 12 monitored areas of the UK. Hiring was relatively muted, but again this trend was better than in most parts of the UK.

“Local firms welcomed reduced price pressures from some of their expenses such as electricity, fuel, gas and materials like aluminium, glass, paper and timber.

“October was the first month in four years in which cost inflation was below its trend level. With demand conditions remaining favourable, local companies were more aggressive in their pricing strategies, though the rate of charge inflation remained below that for input costs.”

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