Region’s growth slows but remains one of UK’s best performers
Growth in the West Midlands economy slowed in May as the region braced itself for the general election, latest figures have suggested.
The Lloyds Bank Regional Purchasing Managers’ Index (PMI) survey shows the West Midlands PMI fell from 60.3 in April – a two-year high – to 56.5 last month. Any reading above 50 signifies expansion in business activity.
The rate of job creation remained above the UK average as businesses sought the staff to complete outstanding orders, but employment rose more slowly than in April.
Although input cost inflation – including raw materials and staff wages – eased slightly from April, it remained high in May. However, firms in the West Midlands did not pass all of the extra cost on to customers, as May saw the weakest rise in the average prices charged for goods and services in 2017 so far.
The Lloyds Bank PMI is considered a leading bellweather for checking the economic health of UK regions as it is based on responses from manufacturers and services businesses about goods and services produced during May compared with the previous month.
Mark Cadwallader, regional director for the West Midlands at Lloyds Bank Commercial Banking, said: “Businesses in the West Midlands endured a slowdown when compared to April but the region remains one of the best performing parts of the UK.
“The rate of growth in outstanding work is at its highest level for over two-and-a-half years, suggesting firms will seek to create jobs over the coming months to help clear the backlog.”
