Businesses in the East of England have seen a rise in employment but are still struggling with increasing demand.

The Natwest East of England 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 - fell from 58.3 in October to 54.7 in November.

Staffing levels, however, rose sharply across the East of England with the employment rate at a three-month high.

Firms increased staff numbers in line with higher output requirements. There has been job creation every month since February of this year.

November also saw business activity expand but growth soften. Private sector business activity has seen an upturn softer than the rest of the UK.

New businesses in the East of England's private sector saw higher intakes during November. There has been increased demand as clients placed orders that had previously been delayed.

Firms were unable to meet this demand, however, as evidenced by an increase in outstanding business. The rate of backlog accumulation did ease to a nine-month low but was softer than the UK as a whole.

Shortages of essential inputs and supply-chain issues were accredited as the cause for the backlog.

Because of the elevated cost pressures and higher operating cost, charges for goods and services were raised substantially during November. The rate of inflation was the strongest recorded in 22 years.

Goods producers are continuing to record a markedly stronger increase in their charges than service providers.

The rate of growth was largely unchanged from October and was strong compared to the historic average. New order growth, however, was softer in the East of England than across the rest of the UK.

Expectations in the East of England were among the weakest recorded of the regions monitored, with only Northern Ireland and the North East registering weaker levels of market confidence.

Output levels remained positive. But, the Future Activity Index posted its lowest reading in 13 months and was softer than the 2021 average.