Yorkshire firms outperform national rivals

The latest survey of purchasing managers said private sector activity and new business both expanded at their quickest rates in three months.

In both cases growth was sharper than the respective UK averages.

Companies hired additional staff in June, extending the current period of job creation to 25 months.

But cost pressures intensified as input prices rose at the quickest rate since March 2014.

The seasonally adjusted Lloyds Bank Yorkshire and Humber Business Activity Index posted at 58.5 in June, up from 53.6 in May, signalling a strong increase in output at private sector firms.

The latest reading was the highest since March and posted above the UK average for the first time in three months.

Underpinning the sharper rise in output was a further increase in new orders in June. In fact, the latest expansion was the strongest in three months and faster than the UK-wide average.

Panellists mentioned new client wins, while some others commented on greater sales volumes from Asia and the US.

Solid employment growth was registered in the private sector in June. According to firms, investments in new product start-ups and greater output led to the hiring of extra staff. That said, employment growth was the weakest in one-and-a-half years.

Volumes of work outstanding accumulated in June. A rise in sales volumes was cited as the main driver behind the latest increase in work-in-hand. This contrasted with the UK as a whole, where a slight decrease in backlogs was registered.

Input price inflation was the strongest since March 2014.