Region’s economy ‘gaining momentum’
THE region’s economy continues to improve and output rose at its strongest rate for more than two years, according to research.
The Lloyds TSB North West Business Activity Index for June also shows a heartening increase in workforce numbers and new orders rising at a higher rate than the rest of the country.
The headline Lloyds TSB North West Business Activity Index – a seasonally adjusted index that measures the combined output of the region’s manufacturing and service sectors – was 58.1 in June (up three points from May), indicating the strongest improvement in operating conditions across the region in over two years.
The general corporate view was that strengthening business and consumer confidence, new contract wins and improved weather conditions were the factors behind the increase.
With both manufacturers and service providers posting growth, new orders expanded at the sharpest rate since May 2010. Panellists stated that demand from domestic and foreign clients was stronger, with some firms also reporting new product launches.
Higher output levels led companies to increase their workforce numbers during June. The overall rate of job creation was solid, and the quickest in over five years. Employment growth was mostly around the manufacturing sector.
Paul Smith, area director for Lloyds TSB Commercial Banking in the North West, said: “The North West economy gained further momentum in June, with growth of activity and new orders accelerating sharply and exceeding the UK average.
“This meant private sector companies across the region ended the second quarter on a much stronger note than that recorded in the first three months of 2013. The rate of job creation also picked up pace and inflation rates were lower than they have been before, suggesting that activity growth may be sustained in coming months.”
