The North West economy saw a “promising” start to the year as confidence continued to grow, the latest Regional PMI survey data from NatWest has shown.

The March edition of the economic survey showed firms reporting “a sustained upturn in business activity” as demand strengthened and employment showed a small rise - while price pressures were among the lowest seen in the UK.

The headline North West PMI Business Activity Index, which measures the combined output of the region’s manufacturing and service sectors, registered a second successive reading of 52.7 in March. Any output above fifty represents growth, and the North West figure was in line with the UK average of 52.8.

The North West saw a third successive monthly rise in inflows of new business, with the rate of growth picking up to the quickest since May 2022. The rate was faster than the average for the UK as a whole, with NatWest saying “surveyed firms remarked on improving client confidence and greater business wins in the domestic market”

Business confidence reached its highest level for more than a year in the North West, with businesses planning investment, new product launches and more marketing efforts.

Employment rose slightly in March following a flat February, as service sector growth offset manufacturing job losses.

The rate of input price inflation in the region fell slightly in March, after hitting a seven-month high in February. It was the second-lowest figure among all the UK’s nations and regions, with respondents noting wage rises and supplier price hikes.

Higher input costs meant businesses continues to raise prices for goods and services, though the rate slowed slightly on February.