The NatWest Regional Growth Tracker for June 2025 indicates a rise in business activity across eight of the 12 UK regions monitored.

It marked the most widespread growth since September 2024. The tracker surveyed businesses in the manufacturing and services industries.

The expansion, particularly in the East of England, the South West, and London, reflects a positive shift from May’s figures, according to the bank.

The East of England recorded its fastest rate of expansion in over three years, leading the growth among regions. The South West and London followed closely.

While business activity remained unchanged in the North West, it nearly stabilised in the East Midlands and Yorkshire & Humber.

Northern Ireland experienced a minor setback after growth in May.

New business growth was sustained in Wales, with renewed upturns in the East of England, the North East, the South West, and London.

The East of England recorded the quickest expansion in over two years.

Conversely, Northern Ireland saw a modest drop in new orders.

NatWest chief economist Sebastian Burnside said: “It was a positive end to the second quarter, with most UK nations and regions back in growth territory.

“Even where business activity dipped in June, with the rates of decline being only modest and the performances better than seen on average over the first half of the year, those areas are still in what we dub ‘recovery’ territory. The same is true for underlying demand. New business either rose or was on a more stable footing compared to earlier in the year.”

Employment figures showed a decline across nearly all UK regions in June, except for Northern Ireland, where workforce numbers rose slightly for the first time in five months.

Yorkshire & Humber recorded the steepest decline in staffing levels.

The volume of outstanding business decreased in almost all regions, indicating reduced pressure on business capacity.

The North West and Yorkshire & Humber experienced the sharpest declines while the North East saw a marginal increase.

Input price increases slowed across all nine English regions and Wales last month, with the weakest cost inflation in the north-west.

In contrast, Northern Ireland and Scotland saw slightly faster increases in operating expenses, with Northern Ireland recording the steepest rise.

While average prices for goods and services continued to rise, inflation rates eased across all areas.

The West Midlands saw the most significant slowdown, and Yorkshire & Humber had the lowest overall rate of increase.

Northern Ireland experienced the steepest rise in output prices.

Burnside added: “The labour market is the main weak spot at the moment, as the combination of wages pressures and underutilised capacity encourages firms to look for productivity gains where possible.

“Encouragingly, cost inflation has come down from the highs seen in the spring, dropping even further in June across most parts of the UK. Businesses in all areas have been able to make smaller and smaller price increases of their own in the last couple of months, relieving some of the pressure on demand.”

Business expectations for the next 12 months remained positive, with the strongest optimism in the West Midlands.

However, confidence decreased from the previous month in most regions, notably in the North West.

Earlier this week, Novuna Business Finance revealed that the proportion of UK small businesses anticipating growth has declined for the fourth straight quarter, hitting levels not observed since the 2020 lockdown.