The headline Lloyds Bank Yorkshire & Humber Business Activity Index – a seasonally adjusted index that measures the combined output of the region’s manufacturing and service sectors – registered at 58.3 in October, signalling strong growth in activity among private sector firms in Yorkshire & Humber.
This was supported by a sharp rise in new business, with the pace of growth accelerating since September. Moreover, the latest increase was faster than the UK average for the third month in a row.
A number of respondents cited stronger demand from existing clients and higher productivity as leading to the latest growth in new orders.
Employment in the Yorkshire & Humber region rose for the seventeenth successive month in October, with the pace of growth exceeding that recorded at the UK level.
Firms cited improved business conditions and strong turnover growth as the key drivers behind the latest increase in payroll numbers.
Growth in business outstanding fell for the first time in six months in October. The rate of decline, however, was only fractional, with manufacturers only noting a decline, while service providers noted a sharp rise in backlogs of work.
October saw input prices stay unchanged from the previous month, which ended more than two years of continuous cost inflation.
Prices charged, meanwhile, increased for the fifth consecutive month. The pace of charge inflation, however, eased from the previous month to the slowest in the current period of price rises.
Furthermore, the vast majority of surveyed firms (93%) noted no change in selling prices in comparison to the previous month.
Commenting on the Lloyds Bank Yorkshire & Humber PMI survey, Leigh Taylor, area director for SME Banking in the North East, Lloyds Bank Commercial Banking, said: “Growth momentum across Yorkshire and the Humber remained strong in October, supported by strong new order growth and rising employment.
“New business rose faster than in September, while job creation rose for the seventeenth successive month in October.
“Improved business conditions and strong turnover growth were cited as the main reasons underpinning the latest expansion in activity.”