Economics

Positive start to 2022 for most UK regional economies

The latest Purchasing Managers’ Index surveys from the UK.

11 Feb 2022 . 2 min read

Latest Royal Bank of Scotland Regional PMI data showed an improvement in economic performance across most UK regions and nations in January, following the broad slowdown in growth caused by the emergence of the Omicron variant at the end of last year.

PMI Update

Local labour markets remained in recovery mode, but sharply rising prices were once again a prominent feature across all parts of the UK.

Sebastian Burnside, Royal Bank of Scotland Chief Economist, commented:

“Most regional economies across the UK made a positive start to 2022, as the uncertainty surrounding the Omicron variant eased and restrictions were loosened. Output growth generally picked up amid signs of demand starting to rebound in January.

“Businesses across all parts of the UK are predicting 2022 to be a good year for growth, which is translating into more new jobs across local economies. The broad-based recovery in regional labour markets that began last spring continued into the new year, despite reports of tightness in the job space.

“Elevated cost pressures continue to pose a challenge for the UK’s businesses and consumers alike, however. With the survey’s measures of firms’ input and output prices staying close to record highs in all regions, and in some cases even reaching new peaks, the cost-of-living squeeze we’ve seen in recent months is set to continue.”

Download the full report below.

Download the Royal Bank of Scotland UK Regional PMI - January 2022

The PMI Business Activity Index (PDF, 341KB)

Download

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