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The quarterly Small Business Recovery PMI, which monitors the business conditions and activity of SMEs across the manufacturing, services and construction sectors, saw a rapid upturn in business activity in Q2.
Last updated: 16 Jul 2021 2 min read
The latest NatWest UK Small Business Recovery PMI saw UK small businesses record a fourth straight monthly increase in output during June 2021, with looser pandemic restrictions leading to a surge in customer demand. On average, the rate of business activity expansion in the second quarter of 2021 was the fastest since the index began more than 23 years ago.
Small construction firms led the latest upturn in business activity, helped by rapid increases in residential work and a boost from new commercial projects as the UK economy reopened. Small manufacturers also registered a strong recovery, but supply disruption led to a slowdown in production growth.
Andrew Harrison, Head of Business Banking at NatWest, says: “While the UK’s small businesses do face challenges on their road to recovery, it’s reassuring to see that business optimism in this important part of the economy is the strongest it’s been since this index began.
“Looking at the regional picture, we can see a consistent pattern of output recovery and job creation among small businesses. Across the second quarter, the fastest rates of growth were experienced in the North of England and Midlands. This regional picture further supports the findings in our recent SME Recovery Report that we need to support small businesses outside London and redress the balance.”
To read the full report, click the link below.