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East of England firms confident going into 2021 | East Anglian Daily Times

Businesses remained confident moving into 2021, a survey suggests - Credit: Spectra Packaging East of England firms battling the economic effects of the coronavirus pandemic cut their workforces in November, but remain confident about the future, a survey suggests. The headline NatWest East of England Business Activity Index – a seasonally adjusted index that measures the month-on-month change in the combined output of the region’s manufacturing and service sectors – fell from 54.9 in October to 51.2 in November.  The latest figure signalled the softest expansion in the current five-month period of growth, although the rise in business activity – albeit marginal – contrasted with a decline across the UK as a whole. Survey respondents attributed the moderation to tightening restrictions implemented to control the surge in coronavirus cases.

Business activity across the region drops for second month in row because of lockdown

File photo dated 19/11/08 of workers in a factory as output in Britain s manufacturing and construction industries unexpectedly fell in May, suggesting the UK economy has continued to stutter following a slowdown at the start of the year. PRESS ASSOCI BUSINESS activity had declined in the region for the second month in a row, but at a slower rate than during the height of the pandemic. The headline NatWest South West Business Activity Index – a seasonally adjusted index that measures the month-on-month change in the combined output of the region’s manufacturing and service sectors – fell from 49.7 in October to 47.1 in November.

Steeper drop in South West activity in November amid second lockdown

This signalled a second successive monthly decline in business activity. The rate of reduction was solid overall, albeit much slower than those seen during the height of the pandemic. Companies linked lower business activity to the renewed lockdown measures stemming from the coronavirus pandemic, and a subsequent drop in client demand. That said, new business fell at a softer pace than seen in October. Nonetheless, firms cut their staff numbers sharply amid further signs of excess capacity and a stronger rise in costs. However, optimism towards the year ahead picked up to a record high amid hopes of a timely end to the pandemic.

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