The headline NatWest Yorkshire & Humber PMI® 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 – fell below the crucial 50.0 mark which separates growth from contraction in February, signalling a renewed drop in business activity across the region. At 48.3, the index was down from January’s six-month high of 51.2. The fresh deterioration in private sector output contrasted with the overall UK trend, which was of sustained growth. Notably, Yorkshire & Humber companies underperformed its regional peers on key barometers of economic health in February. For both new orders and employment, the region saw the fastest rate of decline out of the 12 monitored parts of the UK. The seasonally adjusted New Business Index posted below the 50.0 no-change mark in February, signalling a tenth successive month of falling demand for Yorkshire & Humber goods and services. The rate of decline was modest, but worsened slightly. Sluggish market conditions reportedly weighed on customers’ appetite for new orders, anecdotal evidence showed. Notably, of the 12 monitored UK regions, Yorkshire & Humber registered the fastest slump in sales. After retreating in both December and January, Yorkshire & Humber firms’ 12-month growth expectations rebounded in February to a ten-month high. New product launches, strategic changes and efficiency improvements were all noted as reasons to be optimistic, according to survey respondents. The overall level of optimism was slightly stronger than seen for the UK as a whole. There was a renewed decline in private sector employment across Yorkshire & Humber during February. The respective seasonally adjusted index recorded below the 50 no-change mark for the first time in four months and pointed to a modest rate of job shedding. As was the case with new orders, Yorkshire & Humber registered the strongest pace of decline in staffing levels of the 12 monitored UK regions. Redundancies and the non-replacement of leavers were methods through which employers cut their headcounts. Softening capacity pressures within Yorkshire & Humber were evidenced by another month of falling backlogs of work in February. The seasonally adjusted Outstanding Business Index posted below the neutral 50.0 threshold for a twelfth successive month. Overall, the rate of reduction in orders pending completion was solid and the fastest for three months. Some survey respondents noted that demand conditions were too weak to drive backlogs higher. The latest PMI data showed a persistence of stubborn cost pressures for companies in Yorkshire & Humber midway through the first quarter. This was signalled by the seasonally adjusted Input Prices Index, which held firmly above both the 50.0 no-change mark and its long-term average (58.5 since 1997). Where a rise in operating expenses was reported, increased transport costs were mentioned, while others noted greater wage pressures. With input price pressures remaining steep, private sector firms in Yorkshire & Humber responded by lifting their selling fees in February. The rate of increase was strong and the fastest since July last year. Higher selling prices reflected the passing on of greater costs, anecdotal evidence showed. Malcolm Buchanan, Chair of the NatWest North Regional Board, said: “After a promising rebound at the start of the year, Yorkshire & Humber’s economy has slipped into contraction again. What’s noteworthy is the region’s divergence from the wider UK trend, which was of robust expansion in February, and suggests the national recovery from recession will be a disjointed one at the regional level. “Of concern are trends in employment and new business, which were the weakest seen across the 12 monitored parts of the UK. Companies are also struggling with still-elevated inflation and are passing this on to customers despite the weakness in their sales performances. That said, a rebound in business confidence suggests companies are expecting this setback to be temporary.”

Businesses, universities, and hospitals will benefit from an £80million pound investment zone to drive the development of life-changing technologies. The plan will be brought forward on Thursday by West Yorkshire Mayor Tracy Brabin when regional leaders meet for the final Combined Authority meeting of her mayoral term. The first half of the 10-year, £160m West Yorkshire Healthtech and Digital Tech Investment Zone – given the green light from Levelling Up Secretary Michael Gove last week – is expected to leverage over £220m of public and private sector investment over five years, creating over 2,500 skilled jobs. The package of support will bring together universities, businesses and hospitals to deliver cutting-edge research and develop innovative new technologies for patients, to be used in the UK and world-wide. As the home of NHS England, West Yorkshire is a global leader in health and digital technology, with universities in Bradford, Huddersfield and Leeds partnering with NHS Trusts and local firms to share their expertise, develop exciting new products, and transform patient care for millions of people. Tracy Brabin said: “For the UK economy to prosper it needs West Yorkshire to succeed, and devolution is helping us empower our healthtech and digital sectors, transforming the lives of patients world-wide. “This multi-million pound investment will help us build world-leading centres of innovation in Bradford, Huddersfield and Leeds, bringing together our universities, businesses and hospitals to drive the development of lifechanging technologies and deliver thousands of skilled jobs. “Through our investment zone, we’re changing our region for the long-term, working with partners and the government to build a stronger, brighter West Yorkshire that works for all”. The investment zone will centre around three nationally significant clusters of economic activity, powered by investment in infrastructure, skills training and business support. They are:

• The Digital Health Enterprise Zone at the University of Bradford, which supports business growth, knowledge and skills development by connecting academics, researchers and health and social care partners. It also contributes to the training of future healthcare professionals, advancing research and commercial opportunities through its dedicated simulation space, The Technology House. Its aim is to work with other universities, local government and wider partners to make West Yorkshire the place for health tech innovation.
• A National Health Innovation Campus at the University of Huddersfield, where the university is investing over £250 million to develop a state-of-the-art campus, focused on specialist clinical teaching and research to tackle health inequalities.
• A HealthTech Innovation Hub in Leeds – a flagship project of the investment zone which will see the development of the first phase of Leeds Teaching Hospitals NHS Trust’s 1 million square foot “Leeds Innovation Village” on the site of Leeds General Infirmary. This will involve the construction of the Trust’s new, world-leading, state of the art digital hospital at the Old Medical School.

Professor Shirley Congdon, Vice-Chancellor at the University of Bradford, said: “We welcome the opportunities for Bradford and West Yorkshire businesses afforded by the Investment Zone. “Our University will offer businesses in the digital and health technology sectors access to many ways to make a difference, through innovation, workforce development and access to high end facilities, an example of which is our recent £4.8m award from Research England to develop and evaluate innovative health technology.”

Fast-tracked investment of £180m over the next year is expected to prevent more than 8,000 sewage spills polluting English waterways, the Environment Secretary will announce today. It follows the Secretary of State directing water and sewage companies to measurably reduce sewage spills over the next year by accelerating commitments and delivering new funding. Examples of measures include investment in AI systems to help manage storm loads, the installation of thousands of new in-sewer monitors to check flows and spot blockages early, the recruitment and training of specialist staff, and accelerated wetland construction programmes. These new funding commitments are over and above water companies’ existing £3.1 billion investment into storm overflow improvements, as well as their ongoing annual investment to maintain the performance of the existing network. It follows the recent ban on bonuses for water company executives where firms have committed serious criminal breaches, subject to Ofwat consultation, and the quadrupling of the Environment Agency’s regulatory capacity, enabling them to carry out 4,000 water company inspections by the end of the next financial year. Environment Secretary Steve Barclay said: “The amount of sewage being spilled into our rivers is completely unacceptable, and the public rightly expects action. This £180 million of accelerated investment, which will stop more than 8,000 sewage spills over the next year, is a welcome step forward as we continue to push for better performance from water companies and hold them to account. “This money will mean more cutting-edge technology, including artificial intelligence, and more specialist staff to detect and reduce spills.”