Yorkshire sees employment growth hit a 14-month high

The Yorkshire and Humber has seen business activity and employment increase at a faster rate than the UK average during December, according to the latest Lloyds Bank Regional Purchasing Managers’ Index (PMI) survey.

Employment growth in the region rose to a 14-month high, with December seeing job creation in Yorkshire higher than the UK average for the third month running.

The region’s PMI reading increased to 57.7 in December, up from 54 in November, which shows an accelerated expansion in business output. A reading greater than 50 signifies growth in business activity, while a reading below 50 signifies contraction.

The Lloyds Bank Regional PMI conducts a economic health-check of UK regions. It’s based on responses from manufacturers and services businesses about the amount of goods and services produced during December compared with a month earlier.

Yorkshire firms said that greater consumer confidence and stronger international demand during December led to an increase in new orders, which as a result increased activity.

December also saw the quickest rise of input costs, which include raw materials and salaries, for Yorkshire firms since April 2011.

Leigh Taylor, regional director for SME banking at Lloyds Bank Commercial Banking, said: “The Yorkshire and Humber economy ended 2016 on a high, with business activity picking up speed and order books growing.

“The boost in job creation during December also demonstrated Yorkshire firms’ resilience during another month of increased input costs.

“Employment growth is now at its highest level since October 2015, which is a major win considering that employment was in a state of decline from March to August last year.”

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