East Mids firms report 17-month high

East Midlands firms experienced the biggest boost to their order books in 17 months at the end of the first quarter, according to the latest Lloyds Bank Regional PMI survey.

The rise in new business resulted in an increase in the quantity of products and services sold to customers, and companies took on extra staff to meet demand.

The East Midlands PMI® posted 54.8 in March, down slightly from 55.0 in February, but still lling ongoing growth in business activity. A reading of above 50 signals growth and below 50 signals contraction. The increase in output in the region was broadly in line with the UK average.

Inflation of businesses’ input costs, which include overheads, raw materials and staff wages, eased in March, but remained present as the weak pound continued to push up prices. In turn, many companies chose to pass on their increased cost burden to customers in the form of higher prices.

The Lloyds Bank PMI, or Purchasing Managers’ Index, is the leading economic health-check of UK regions. It is based on responses from manufacturers and services businesses about the amount of goods and services produced during March compared with a month earlier.

Dene Jones, regional director for the East Midlands, Lloyds Bank Commercial Banking, said: “The latest PMI reading paints a positive picture for firms in the East Midlands and, although there’s been a hike in selling prices, businesses have seen a boost in new opportunities and attracted new customers.”