North West economic decline slows

THE decline of the North West economy has at last started to slow, although manufacturing remains hard hit, according to a new survey.

The latest data from the Royal Bank of Scotland’s PMI North West report showed a slower rate of contraction in private sector business activity in March than in previous months. This decline was centred on manufacturing, with service providers recording growth.

And although employment figures fell again, it was at the slowest rate for three months. Again, the most marked decline in jobs continued to be recorded in the manufacturing industry.

Philip McKinnon, economist at The Royal Bank of Scotland, said: “March data continued to signal a contraction of North West private sector activity. Weak economic conditions ensured that demand remained subdued, resulting in further falls in new orders.

“However, there were some encouraging signs. The rates of contraction in output and new orders have slowed sharply since the start of the year. Companies also retained a measure of pricing power, raising their prices for the second month running.”