Economy grows, but at a slower pace

THE North West’s economy continued to expand in October, with output rising for the 18th successive month. However, growth was at its weakest level for a year and the rise in input costs remained high and well above the national average.

Data from analyst Markit which measures business activity in both the manufacturing and service sectors, showed that the region’s private sector continued to outperform the UK average, with its manufacturing sector once again leading the way. Employment numbers also increased for the first time in three months.

However, anecdotal evidence suggests that much of the growth came from firms fulfilling existing orders as opposed to new work coming in.

The Business Activity index also reported that the region’s private sector firms reported another sharp rise in their average input costs due to a combination of factors including higher salaries, greater fuel costs and raw material price increase. These were partly assuaged by firms increasing their own charges.