Lack of credit still hurting region's businesses

BUSINESS growth in Yorkshire is still being restricted by a lack of credit, according to the head of a leading business group, as new figures showed the private sector is expanding at a slower rate.
By The Newsroom
Published 14th Sep 2010, 12:03 BST
Updated 14th Sep 2010, 12:04 BST

Margaret Wood, regional chairman of the Institute of Directors, spoke out after the Yorkshire and Humber PMI, which measures manufacturing and service sector output, showed growth in the private sector economy fell to a seven-month low in August.

The headline Business Activity Index fell to 54.9 from 57.1, but remained above the UK average. Both sectors reported weaker growth in business activity, with manufacturing posting slower growth than services. There was a sustained rise in operating costs, but output charges fell slightly.

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Mrs Wood said: "As the economy emerges from the turbulence of the last two years confidence is still lacking and caution seems to be the order of the day.

"There still seems a reluctance for finance to be made available for business growth although interest rates remain low. However the news indicates the Yorkshire economy is adapting to the present economic climate."

Patrick Bowes, chief economist at Yorkshire Forward, said: "Whilst it is evident that demand has softened to some extent, the rate of new order growth remains robust."

Related topics:Yorkshire