Regional business growth slow to three-year low
Growth in Yorkshire and Humber’s private sector business activity slowed to a three-year low in February, research from Lloyds Bank said.
Global conerns – including the weakened China economy and uncertainty over the UK’s future in the European Union (EU) – appeared to weigh on international and domestic demand, dampening business expansion.
The Lloyds Bank Yorkshire & Humber Business Activity Index fell from 55.1 in January to 51.9 in February. An index of 50 or above indicates growth.
This reflects sharp falls in sector purchasing managers’ index (PMI) data for February. According to Markit/CIPS research, last month’s service sector PMI was 52.7, down from 55.6 in January.
Manufacturing fell to a 34-month low, to 50.8 from the previous month’s 52.9. Construction fared better, down to 54.2 from 55.
Lloyds Bank said employment levels in Yorkshire and Humber were stable in February after 32 consecutive months of growth. Both payroll numbers and business activity growth fell behind the UK as a whole.
Leigh Taylor, regional director for SME Banking in the North East and Yorkshire at Lloyds Bank Commercial Banking said the slowing of business growth in the region was “led by a smaller increase in new orders”
He said: “The rates of expansion were weaker than the respective UK averages and firms were cautious towards hiring additional workers. On a more positive note, cost pressures continued to fall, whereas charges rose at the highest rate in nearly a year.”
