- London and North East record strong output growth in December
- Employment growth confined to Northern Ireland
- Business costs rise more quickly in most areas
The Business Activity Index is the first fact-based indicator of regional economic health published each month, tracking the monthly change in the output of goods and services across the private sector. A reading above 50 signals growth, and the further above the 50 level the faster the expansion.. The North East and London were the two standout performers in terms of regional business activity growth in December. The only other area to see an increase in output was the East Midlands, although the rise there was modest. At the other end of the scale, the North West and Scotland recorded the joint-steepest falls in business activity, followed by Northern Ireland.
Sebastian Burnside, NatWest Chief Economist, commented:
"London was the UK’s most consistent economic performer as 2024 came to a close and the North East was on an improving trajectory for the second half of last year. "Despite its recent dip, Northern Ireland enjoyed decent growth in 2024 and placed second behind London for its performance across the year as a whole. Furthermore, Northern Ireland was the only area to see a rise in employment during December, with labour market conditions generally cooling across the UK in line with rising labour costs and less optimism towards future growth prospects. "Business costs rose more quickly across three-quarters of the UK's nations and regions in December, underpinned by increasing wages and salaries. With these costs expected to rise further in the coming months as the announced increases in employers' national insurance contributions and the national minimum wage come into effect, firms’ growth expectations are subdued by historical standards in most parts of the UK.”
Please see the regional reports in full:
UK National (PDF, 1,822KB)
East of England (PDF, 2,100KB)
East Midlands (PDF, 920KB)
London (PDF, 396KB)
North East (PDF, 1,461KB)
North West (PDF, 1,547KB)
Scotland (PDF, 1,268KB)
South East (PDF, 4,094KB)
South West (PDF, 2,243KB)
Wales (PDF, 924KB)
West Midlands (PDF, 2,067KB)
Yorkshire and the Humber (PDF, 1,730KB)
