Partner Article

Private sector output on the up

GROWTH in private sector activity in the region continued to outpace the national average last month, according to new data.

The latest North East PMI figures showed private sector companies indicated further robust expansions in both activity and new work, while employment growth gained pace.

However, figures also suggested that North East firms faced sharper input cost inflation than the UK average.

The region’s private sector companies recorded another marked rise in inflows of new business during the latest survey period.

Panellists stated that a combination of a more favourable economic environment, stronger market demand and promotional efforts resulted in higher sales levels. However, the rate of increase moderated since August to the weakest for four months.

Another increase in new work led firms to raise activity levels in September, albeit to a lesser extent than in the previous month. This is highlighted by the headline seasonally adjusted Business Activity Index, which registered 54.5, down from 55.1 in August. By sector, services registered a more pronounced increase in activity than manufacturing.

Greater volumes of new business led to a steeper rise in employment at North East private sector companies during September. Although still only moderate, job creation was the most marked since June. Service providers hired workers at a faster rate than manufacturers.

Despite further new work growth, outstanding business at North East private sector firms continued to fall in September. Backlogs have now been depleted for two months, with panel members attributing the latest decline to efforts to improve efficiency at their units.

Robin Beveridge, head of policy and research at One North East, said: “The Purchasing Managers’ Index continues to show real improvements in the North East economy, with a rise in private sector job creation particularly welcome. We know there are still tough times ahead and One North East will continue to do.”

This was posted in Bdaily's Members' News section by Ruth Mitchell .