• Number of regions enjoying growth doubles since September’s downturn 
• London drives regional growth followed by the South East and North East 
• Cost pressures generally ease but employment remains under pressure 

Half of the 12 nations and regions monitored recorded a rise in business activity in October, up from just three in September, with sustained growth in the East of England, London and South West.  

The North East, South East and West Midlands experienced a return to growth after September’s dip – but slight decreases in output were registered elsewhere.      

The Tracker's headline figure is the Business Activity Index. Any reading above 50.0 signals growth, and the further above the 50.0 threshold the faster the rate of growth signalled.    

London recorded the strongest growth for the fourth month running (index at 55.9), followed by the South East (53.1) and North East (52.3). Wales (48.5) registered at the bottom of the rankings but at a noticeably slower rate of decline than in September.   

Firms continued to report employment pressures but the number of regions reporting upturns in hiring was at its highest level in almost 12 months. 

Commenting on the Tracker’s findings, Sebastian Burnside, NatWest Chief Economist, said:

“October's growth tracker showed a generally more positive set of results than we saw last month, with broader growth in business activity being accompanied by signs of stability in labour markets across the UK and a general easing of cost pressures facing businesses. 

“London continues to lead the way, but renewed upturns in the South East, North East and West Midlands meant that half of the UK's regions saw business activity growth of some description. Even where activity fell, the rates of decline slowed in most cases and there was general optimism about the year-ahead outlook.

“Although labour markets remained under pressure, October saw a rise in employment in three regions – which was the most in almost a year – and there were signs of some stability almost everywhere else.  

“There was also positive news on the inflation front as businesses in most areas reported slower increases in their costs in October.”   

Please see the regional reports in full:

East of England (PDF, 912KB)

East Midlands (PDF, 941KB)

London (PDF, 869KB)

North East (PDF, 878KB)

North West (PDF, 1,220KB)

UK National (PDF, 1,700KB)

Scotland (PDF, 1,535KB) 

South East (PDF, 1,100KB)

South West (PDF, 951KB)

Wales (PDF, 944KB)

West Midlands (PDF, 771KB)

Yorkshire and the Humber (PDF, 2,300KB)