Regional growth weakens, says survey

NORTH West private sector business activity growth eased to near-stagnation in July as new orders rose at the slowest pace since the start of the upturn in May 2009.

A business activity survey from the Purchasing Managers’ Index said that concerns about the economic outlook, combined with rising input costs, had caused the slowdown, as well as the first cuts in employment rates the region has experienced in six months.

Downgraded output forecasts and cost cutting exercises were the reasons cited for lower employment numbers.

New orders rose at the weakest level of the current 27-month run of growth, with anecdotal evidence suggesting lacklustre demand, reduced confidence and an element of destocking at the reasons for the tail-off.

Leigh Taylor, North West director for survey sponsors Lloyds TSB Commercial, said: “North West private sector output grew at the second-slowest pace of all the UK regions in July. Manufacturing was the main area of weakness, with falling production in the sector contrasting with strong growth earlier in the year.

“Companies in the region cited reduced confidence in the economic outlook as having a negative influence on business activity and inflows of new orders in July. This in turn led to a reversal of the recent upward trend in private sector employment.”