Region outperforms rest of UK with third output rise

Martyn Kendrick, area director for Lloyds TSB Commercial in Yorkshire, said: “Yorkshire & Humber outperformed the rest of the UK in November, with the latest PMI data pointing to the fastest activity growth of all 12 regions.

“In contrast to the job losses seen across the UK as a whole, local businesses hired additional staff last month.”

Although job creation was only marginal, it contrasted with job losses registered across the UK as a whole.

However, new business volumes fell during the latest survey period, ending the period of growth that began in July 2009.

Firms in the region reported weaker underlying economic conditions.

“New business fell for the first time since June 2009, with companies generally citing weaker global economic conditions,” said Mr Kendrick.

“This showed that firms in the Yorkshire & Humber private sector were far from immune to the uncertain business outlook in key export markets, along with its negative impact on business spending and consumer confidence at home.”

Input price inflation eased further in November, with the latest increase in input costs the slowest for 25 months.

The headline Lloyds TSB Yorkshire & Humber Business Activity Index – which measures the combined output of the region’s manufacturing and service sectors – registered 54.2 in November and signalled a further rise in business activity.

Lloyds said the rate of output growth was solid and above the long-run series average, despite easing since the previous survey period.

Both manufacturers and service providers recorded an increase in output during November.

The volume of new orders received by companies fell marginally in the region.

The fall was generally concentrated in manufacturing, as service providers reported larger volumes of new business.

Survey respondents attributed the decline in new orders to weaker global economic conditions.

Private sector employment in Yorkshire & Humber increased for the second consecutive month in November.

November data indicated higher input costs in the region, as has been the case since October 2009. Utilities and raw materials were particularly mentioned as having increased in price.

The overall rate of input cost inflation was only marginal and the slowest in 25 months.

Lloyds said that average selling prices fell for the second month running in November, albeit only “modestly”. Firms said charges were reduced in an attempt to boost new business.