A marginal decline in new business curbed charge inflation, as some firms sought to encourage spending by either reducing or leaving their fees unchanged.
After a sustained period of expansion, output volumes were held steady once again, while jobs were shed to a lesser extent.
The West Midlands 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 49.9, little-changed from 50.0 in October and therefore signalling a broadly stable level of output across the region.
This compared with a UK-wide reading of 50.5, which showed marginal growth at the national level. Where an increase in business activity was recorded, West Midlands panellists commented on sales growth.
Amid reports of the passing on of rising expenses to clients, prices charged for West Midlands goods and services continued to increase in November.
The rate of inflation was moderate, however, and the weakest seen since July 2020.
Efforts to stimulate sales reportedly constrained the uptick. West Midlands companies remained upbeat towards the year-ahead outlook for output.
Sentiment across the West Midlands was the second-highest of the 12 monitored UK regions and nations, behind London.
In general, panellists expect advertising, inbound tourism, lower borrowing costs and new product releases to underpin growth in the year ahead.
That said, the overall level of positive sentiment in the region slipped to a 23-month low in November.
Lisa Phillips, Regional Managing Director, Midlands and East, Commercial Mid Markets, said: “Factors such as increased advertising efforts, inbound tourism, lower borrowing costs and the introduction of new products all contributed to a positive outlook for output growth in 2025.
“Notably, only London saw a higher level of business sentiment than the West Midlands.
“An encouraging aspect of the November results was the notable decline in selling price inflation, which receded to its lowest level in over four years.
“Competitive pricing across the West Midlands will be more supportive of sales in the coming months.
“While there was a slight dip in new business inflows during November, local companies remained optimistic about future demand conditions. Jobs continued to be shed, but they did so to a lesser extent.”
