West Midlands business activity rebounded during February, according to the latest NatWest Regional PMI data, reaching its highest point since April 2022.

The headline NatWest West Midlands PMI Business Activity Index – a seasonally adjusted index that measures the month-on-month change in the combined output of the region’s manufacturing and service sectors – was at 53 in the second month of the year, up from 49 in January and above the 50 threshold for the first time in seven months .

Private sector companies in the West Midlands registered a renewed increase in new work intakes in February, ending an eight-month sequence of reduction.

February data pointed to another overall increase in the expenses of private sector companies. The rate of inflation remained elevated, but eased for the third consecutive month to the weakest in two years.

Rashel Chowdhury, NatWest Midlands and East regional board, said: “The latest results surprised on the upside.

“West Midlands companies lifted output in February, moving away from a short-lived downturn, as their clients displayed a stronger appetite for goods and services.

“Alongside an improvement in demand conditions, panellists stated that marketing efforts bore fruit and that customers were more inclined to add to their inventories.

“Business confidence strengthened to its highest level in close to a year, supporting solid growth of local jobs.”