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Economics

NatWest UK Regional Growth Tracker report for May 2025

Confidence returns to UK Business as more regions enjoy increased activity in May

  • Wales and East of England lead growth in May
  • Companies optimistic about opportunities for the year ahead
  • Scottish employment remains resilient

 

May's NatWest Regional Growth Tracker showed renewed increases in business activity across several parts of the UK, alongside a general revival of firms' growth expectations for the coming year. The Tracker – which surveyed businesses operating in the manufacturing and services sectors across 12 regions of the country – showed improvements in growth expectations in every area, with that half of the 12 UK nations and regions covered by the report saw a rise in business activity in May. 

Sebastian Burnside, NatWest Chief Economist, commented: "The rebound in business confidence in May suggests that firms might be in a stronger position for the next quarter. "Certainly, a positive May has driven a sharp increase in optimism, reflecting the recovery from the wider economic uncertainty businesses were feeling across March and April. "This latest survey data suggests businesses are taking steps to improve their productivity. Some of this is being driven by pressure from their bottom lines, specifically increased labour costs following April’s national insurance changes. "Nonetheless, it is positive to see that Scottish firms remain resilient and have experienced an uptick in their employment – the first of 2025. "We're still seeing businesses raise prices as they look to mitigate increased costs. Rates of inflation have pulled back from April's highs, but cost pressures remain historically elevated."

 

Please see the regional reports in full:

 

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This material is published by NatWest Group plc (“NatWest Group”), for information purposes only and should not be regarded as providing any specific advice. Recipients should make their own independent evaluation of this information and no action should be taken, solely relying on it. This material should not be reproduced or disclosed without our consent. It is not intended for distribution in any jurisdiction in which this would be prohibited. Whilst this information is believed to be reliable, it has not been independently verified by NatWest Group and NatWest Group makes no representation or warranty (express or implied) of any kind, as regards the accuracy or completeness of this information, nor does it accept any responsibility or liability for any loss or damage arising in any way from any use made of or reliance placed on, this information. Unless otherwise stated, any views, forecasts, or estimates are solely those of NatWest Group, as of this date and are subject to change without notice. Copyright © NatWest Group. All rights reserved.

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