There was a renewed fall in business activity following a quicker deterioration in demand conditions across the West Midlands during August, according to new research. The latest NatWest PMI Business Activity Index report, a seasonally adjusted index that measures the month-on-month change in the combined output of the region's manufacturing and service sectors, slipped from 50.3 in July to 49.3, pointing to the first drop in three months but one that was marginal overall.
Panellists attributed the contraction to reduced client purchasing, consumers trimming expenditure, economic uncertainty and product availability issues. For the third month running, new business placed with private sector companies in the West Midlands declined in August.
The rate of contraction was modest but accelerated to the fastest since the start of 2021. Where a fall was reported, survey participants mentioned subdued demand conditions amid economic uncertainty.
