Yorkshire economy boosted by private sector growth
THE private sector saw growth during June in Yorkshire with activity and new business increased at “marked rates” according to the latest Yorkshire & Humber Purchasing Managers’ Index (PMI).
The monthly research, sponsored by regional development agency Yorkshire Forward, showed that companies took on extra staff for second time in three months as companies prepared for further output growth, although margins remained under pressure following another increase in average operating costs.
The seasonally adjusted Business Activity Index posted 56.6 in June to indicate higher output for a 13th successive month while despite easing further from April’s 19-year high, the rate of growth signalled by the index remained marked and above the UK average.
Both manufacturers and service providers indicated increases in output, with the latter registering the steeper growth.
Companies widely attributed the latest rise in activity to a solid increase of incoming new business. There were reports of firmer underlying demand, with manufacturers also noting solid gains in orders from abroad, supported by rising levels of global trade.
With trends in output and new orders remaining positive, a number of companies chose to add to their payrolls in the latest survey period. Although only modest, June data marked the second time in three months in which private sector staffing levels have been raised.
A combination of higher capacity and improved efficiency enabled companies to keep on top of overall workloads in June. Latest data showed that backlogs of work outstanding declined slightly, following two months of growth.
Commenting on the Yorkshire & Humber PMI survey, Patrick Bowes, chief economist at Yorkshire Forward, said: “Whilst the overall activity index fell in the month the expansion in new orders and the improvement in employer hiring clearly shows the region’s private sector businesses remain confident.”
Nationally, all nine English regions recorded an increase in business activity in June but the overall rate of growth eased to the weakest for five months.
