Data from the latest NatWest Growth Tracker indicated a stronger rise in business activity across the South West in June, which in turn was supported by a renewed upturn in new orders.

The headline South West Business Activity Index increased from 51.3 in May to 53.9 in June, to signal a solid and accelerated rise in output.

The rate of expansion was the steepest seen since March and extended the current sequence of growth to six months.

Notably, the South West recorded the second- fastest increase in output of all 12 monitored UK regions (behind the East of England).

Where firms cited an increase in activity, this was often linked to improved customer demand and greater intakes of new orders.

Some companies also noted that customers had pushed forward with new projects after previously being hesitant to commit.

Faye Long, Chair of the NatWest South West Regional Board, commented:

“The latest Growth Tracker data indicated that the South West performed strongly in June, with businesses across the region seeing a solid increase in output.

“The upturn was supported by signs of stronger demand conditions, with total new orders expanding for the first time since March.

"While output and sales improved notably, business confidence around the year-ahead dipped slightly at the end of the second quarter.

“Lingering uncertainty around the economic outlook both at home and globally had reportedly led firms to be more cautious around expectations for future output.

"Cost pressures also remained sharp, despite easing since May, while competition for new work weighed on overall pricing power.

“As a result, firms looked to cut costs where possible, driving a further reduction in employment."

New business returns to growth, but companies express reduced optimism around the business outlook

After falling modestly in the prior two months, the overall amount of new business placed with private sector firms in the South West increased in June.