PMI jobs data shows continued economic traction
THE region’s economy is continuing to strengthen, with the second-fastest rise in workforce numbers seen since the 1997.
According to the respected Purchasing Managers’ Index, September data highlighted a sharp rise in output levels, with growth rates out-performing the UK-wide trend.
Incoming new orders expanded for an eighth consecutive month, leading to the second-fastest rise in workforce numbers in the series history.
At 62.3 in September, the seasonally adjusted Lloyds Bank Commercial Banking North West Business Activity Index – an index that measures the combined output of the region’s manufacturing and service sectors – fell from August’s record high of 64.0. The latest reading pointed to a sharp, albeit slower, rise in output and one that was stronger than the national average.
Participants reported new contract wins, improved client confidence and better economic conditions. Both sectors registered higher new business and manufacturers recorded faster growth than service providers.
On the downside, cost inflation in the North West private sector accelerated at its quickest rate since March and was above the national average. Manufacturers reported higher raw material prices, while services firms indicated that food, energy and labour costs all increased.
Paul Smith area director SME Banking at Lloyds said: “The economy across the North West gained further momentum in the third quarter of 2013, with sharp expansions of activity, new orders and employment recorded throughout the summer.
“Business activity growth across the region has also surpassed the UK-wide trend in each of the past five months, suggesting that the North West has contributed strongly to the recent upturn in overall UK GDP growth.”
