YORKSHIRE and the Humber's private sector economy saw further modest growth in business activity in September, latest Regional PMI data from NatWest showed.

The headline 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 – registered 51.4, unchanged from August and slightly above the 50.0 threshold that separates growth from contraction.

The region's quarterly growth performance was its weakest in over two years.

Still, September's increase in output – albeit modest – contrasted with a deepening contraction across the UK as a whole.  

Malcolm Buchanan, Chair of NatWest North Regional Board, said: "Yorkshire and the Humber has managed to keep its head above water and eke out further modest growth, at a time when most other areas have started to see output levels decline.

“It's encouraging to see some resilience in demand for goods and services produced across the region, as well as a continued increase in local employment.

“However, persistently high inflation and increasing customer uncertainty are growing concerns.

“The rate of cost inflation faced by businesses has eased slightly, but it remains uncomfortably high and continues to drive up prices charged for goods and services, thereby compounding cost of living pressures."