North West growth slows while employment remains strong

Lloyds Bank has released the results of its latest PMI survey, showing that while June demonstrated the slowest rate of expansion in the North West’s private sector since April 2013, employment growth maintained a solid pace.

June was the second month in a row that the Lloyds Bank North West Business Activity Index decreased, down to 53.4 from May’s 55.6. Additionally, the North West’s expansion pace was weaker than most of the other UK regions covered.

Employment figures for the North West’s private sector rose in June for the 26th month running, setting a new record.

Discussing the findings of the survey, the area director for SME banking in the North West, Martyn Kendrick, said: “The North West finished the second quarter on a weak footing, with the slowest rise in activity since April 2013.

“Moreover, new business expansion slowed for the fourth month in a row and backlogs were cut at a stronger pace, signalling that growth may ease further in the coming months. Inflationary pressures remain weak, with output prices falling at the biggest pace in over 13 years in the latest period.”

He added: “One bright spot from the survey was employment, however, with the pace of hiring remaining strong.”

The PMI survey data also found that the rate of growth for new business, across both the manufacturing and service sectors, slowed for the fourth consecutive month. New orders for manufacturing companies in the region dropped for the third month running.

While the growth dipped in line with a continued slowdown, the region is still experiencing its longest period of continuous expansion in more than seven years. Furthermore, much of the data has been attributed to a fall in manufacturing output, while activity in the service sector rose at a solid pace.

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