NW economy shows slow growth

ECONOMIC activity in the North West private sector increased in August and new orders expanded at a slight pace, new statistics show.

The Lloyds TSB North West PMI figures also reveal that input prices rose following two successive monthly declines and charges increased accordingly.

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 – posted 51.5 in August, up from the reading of 46.3 in July and pointing to an improvement in the health of the North West private sector.

Output increased slightly in the latest month, led by service providers, while manufacturers recorded a marked contraction in production. The UK as a whole also saw an increase in business activity, with the rate of growth faster than that recorded in the North West.

Leigh Taylor, area director for Lloyds TSB Commercial in the North West, said: “The North West economy returned to growth in August, following a contraction in July, which was an improvement driven by service providers as the manufacturing sector continued to contract. 

“Despite this, the pace of improvement was weaker than that seen across the UK as a whole. While workforces also decreased for the sixth successive month in August, the rate of contraction was only fractional, offering hope that the trend could reverse in the latter part of the year if growth continues.”