The latest NatWest Growth Tracker shows continued expansion in business activity across the South East’s private sector, driven by sustained inflows of new work.
NatWest’s headline South East Business Activity Index recorded 51.1 in November, marking its fifth above-50.0 reading in six months, which signals growth rather than contraction. The figure was down from 53.1 in October, indicating only modest expansion, though still stronger than the year-to-date average.
Firms attributed higher activity to new product launches, stronger order books, and, in some cases, spare capacity from improved labour availability. November also marked the fourth consecutive month of rising inflows of new work. Contributing factors included new client wins, expanded product offerings, increased sales efforts, and a general pick-up in demand.
Companies in the South East remained confident that activity would increase over the next 12 months, citing hopes for a more settled business environment and positive growth strategies.
Despite the growth, operating costs continued to rise sharply in November, extending a run of inflation to five-and-a-half years. Wages, software, energy, rent, and food and drink all reportedly increased in cost. In response, prices charged for South East goods and services were again raised, although the rate of inflation fell to its lowest in nearly five years.
Catherine van Weenen, territory head of commercial mid-market at NatWest, said: “The South East remained a bright spot of the UK economy in November, as even against a backdrop of challenging operating conditions, growth in activity and new business was sustained. With the expansion in output stronger than that of new work, firms focused on clearing their backlogged orders.
“Employment was lowered again, with firms opting to reduce temporary staffing numbers, not replace leavers and in some cases restructure to save on cost. Although operating expenses rose rapidly again in November, South East firms increased their charges at just a moderate rate. With selling price inflation at a near five-year low, firms could even be rewarded with improved sales in the coming months. Overall, confidence levels across the region remained strongly positive, and far more upbeat than on average across the UK.”
