Employment and business activity on the rise in Yorkshire

Employment in the Yorkshire and Humber region increased for the first time in eight months during September, as business activity continued to recover from a fall in the immediate aftermath of the EU Referendum, according to the latest Lloyds Bank Regional PMI report. 

While job creation was slower than the UK average, business activity in the region rose at the sharpest rate since November 2015. 

The increase in activity was helped by a rise in new business, which companies linked to greater domestic and international demand. 

Yorkshire & Humber’s PMI registered 55.6 in September, up from 54.1 in August, signalling a rise in activity that was faster than the UK average.  

The Lloyds Bank Regional PMI, or purchasing managers’ index, is the leading economic health-check of UK regions. It is based on responses from manufacturers and services businesses about the value of goods and services produced during September compared with a month earlier. 

Meanwhile, the weakness of the pound continued to weigh heavily on firms’ profit margins, with input prices rising at the strongest rate in more than five years.  

Leigh Taylor, regional director for Yorkshire at Lloyds Bank Commercial Banking, said: “The latest survey data suggested the upturn in the Yorkshire & Humber region continued to gain momentum this September, as both activity and new orders rose at sharper rates.  

“Stronger growth in the region encouraged firms to take on additional workers for the first time since the start of 2016, though the rate of job creation lagged behind the UK average.  

“Meanwhile, cost burdens rose at the fastest rate in over five years, mainly caused by the weakness of sterling.”

 

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