November sees North West private sector activity growth reach six-month high

Private sector activity growth across the North West during November was at a six-month high, according to a new report.

However, the latest Purchasing Managers’ Index (PMI) from Lloyds Bank also found that growth in the North West was weaker than the average for the rest of the UK.

The region was further found to have achieved growth in new orders last month, but job creation was at its weakest since May 2013. Where employment growth was recorded, businesses pointed to new roles in development and taking on new staff due to predicting higher activity growth.

The Lloyds Bank North West Business Activity Index stood at 54.9 in November, compared to October’s 51.5, indicating the fastest rate of growth in activity in the region’s private sector since May. The growth in activity has been attributed to increased sales both domestically and internationally.

Commenting on the results of the PMI survey, Lloyds Bank Commercial’s director for SME Banking in the North West, Martyn Kendrick, said: “Growth momentum in the North West accelerated, with output increasing at the fastest rate since May and new orders returning to growth.

“Lower input costs helped to ease cost burdens and a stronger pound to the euro encouraged firms to offer reduced selling prices to compete at the international level.”

He added: “However, employment growth slipped to a two-and-a-half year low, highlighting the need to boost staff numbers at a rate closer to the UK average.”

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