Inflationary pressures ease, but output in region is down

EAST Midlands firms signalled a fresh fall in output during September, according to the latest NatWest Regional Growth Tracker, but inflationary pressures eased on the month.

- By TELEGRAPH REPORTER

At 47.4 in September, the headline NatWest East Midlands Business Activity Index was down from 53.3 in August, and indicated a drop in output levels.

Nonetheless, the average reading over the third quarter was the highest since the final three months of 2024. The decrease contrasted with growth seen in August, as companies highlighted weak demand conditions and a steep downturn in new orders.

The pace of decline in new business quickened, as a subdued sales environment also dampened business confidence and employment.

Meanwhile, cost pressures eased to the softest in nine months, with businesses moderating the pace of charge inflation in a bid to remain competitive and drive new sales.

Lisa Phillips, regional managing director, Midlands and East, commercial mid markets, said: “There’s been grounds for optimism in September as the pace of increase in input prices softened to the slowest in 2025 to-date.