Private sector output across Yorkshire and the Humber weakened in September, as the latest NatWest Regional PMI showed the region’s Business Activity Index falling to 45.2 from 47.7 in August. The figure signals a sharper contraction across both manufacturing and services, marking one of the weakest performances in the UK.
The report confirmed a sixth consecutive monthly drop in new business, driven by cautious client spending and lower order volumes. Only Northern Ireland, Wales, and the East Midlands recorded steeper declines. Employment levels continued to shrink, extending a trend that began late last year. Redundancies and hiring freezes were key factors behind the region’s job losses, which slightly outpaced the national average.
Backlogs of work fell sharply, indicating reduced pressure on operating capacity. Price inflation eased to a six-month low. However, firms still faced rising salary costs and steady increases in operating expenses. Selling price growth slowed and remained below the national trend.
Despite the downturn, business sentiment strengthened modestly. Companies in the region cited investment plans, stable pipelines, and long-term demand potential as reasons for guarded optimism, although confidence remains weaker than the UK average.
