Yorkshire business activity outperforms UK average
THE YORKSHIRE economy experienced weaker growth for the second successive month in September, according to new research.
Business activity and new orders fell to eight and seven month lows respectively during the latest survey period, in the findings from the Yorkshire & Humber PMI. However, Yorkshire and the Humber continued to outperform the UK average.
The headline Business Activity Index – which measures the combined output of the region’s manufacturing and service sectors – fell from 54.9 in August to 54.4 in September, the lowest reading since January.
Survey respondents attributed the rise in business activity compared to other areas to increased orders and, in some cases, restocking by clients.
The research found that private sector firms increased their workforces in September to cope with increased business activity and sales. Although only marginal, the rate of employment growth was stronger than the UK average.
Attempts were successfully made by monitored companies to pass on higher cost burdens to clients.
Commenting on the Yorkshire & Humber PMI survey, Patrick Bowes, chief economist at regional development agency Yorkshire Forward, said: “Growth of private sector output and new orders eased during the month, but the rates of expansion in the region remained faster than seen nationally.
“There is some evidence that capacity utilisation is improving further, especially in manufacturing. One clear benefit to result from this is employer hiring intentions – this should help the regional job market and provide a stimulus at a much needed time.”
Looking at the national picture, the majority of English regions saw stronger rise in output, but new business growth remained relatively subdued, the PMI survey found.
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