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Growth hit nine-month high in October

Business activity in the North West grew at the fastest rate for nine months during October as firms experienced a rise in new orders, according to the latest Lloyds Bank Regional PMI report.

The North West Business Activity PMI registered 57.9 in October, which was the second highest recorded out of all UK regions, and was up from September’s reading of 55.7.

A reading above 50 shows growth in the total value of goods and services produced, whereas a reading below indicates decline.

The North West’s growth in business activity was faster than the UK average (55.8), beating the North East and Yorkshire but falling behind Wales.

The rise in new orders resulted in employment continuing to rise as firms built capacity to meet demand, however the pace of job creation was unchanged from September.

Meanwhile, firms experienced another rise in input costs, which include raw materials, salaries, rents and other overheads. Businesses passed part of this increase in input costs on to customers in the form of higher selling prices.

The Lloyds Bank PMI, or Purchasing Managers’ Index, is the leading economic health-check of UK regions.

It is based on responses from manufacturing and services businesses about the amount of goods and services produced during October compared with a month earlier.

Martyn Kendrick, regional director for the North West at Lloyds Bank Commercial Banking said: “In October, businesses built on the strong momentum they developed during Q3, making the North West one of the fastest growing economies in the UK.

“Business leaders will be watching the upcoming Autumn Statement closely for announcements that can help them to build on their recent successes and to deal with their growing cost burdens.”

 

Source: The Business Desk