North West business activity returns to growth

The North West’s private sector economy made a positive start to 2026, according to the latest NatWest Growth Tracker, with business activity in the region increasing for the first time in five months.

Local firms were also more optimistic about the outlook as confidence hit a six-month high.  

The headline North West Business Activity Index – which measures changes in the region’s output of goods and services – moved back above the 50.0 no-change mark for the first time in five months in January, registering a reading of 50.5. This was up from 46.6 in December.

The latest survey results showed an uptick in business confidence across the North West private sector at the start of the new year. Firms’ expectations for activity in the next 12 months reached their highest since July last year.

On the price front, a growing number of firms looked to pass on at least part of the burden of higher costs to customers via increases in prices charged in January. The rate of inflation in average charges for goods and services accelerated for the second month running to the highest since April 2025.

Malcolm Buchanan, Chair of the NatWest North Regional Board, said:

“2026 began on a positive note, with business activity in the North West returning to growth after a challenging few months in the latter stages of last year. Demand showed signs of stabilising and it seems firms were encouraged by this, as business expectations improved to their highest level since last July.

“Like most of the UK, the North West has seen a further decrease in employment in January.

“However, the fact that firms raised output prices at a faster rate – the quickest for nine months – is likely another sign that underlying conditions have improved, as pricing power tends to strengthen during an upturn.”