Partner Article

Regions private sector shows some growth

The regions private sector is showing a mixed recovery, as while growth output and employment continue to expand, new business growth has eased to a two year low.

In new figures published today, Lloyds TSB noted that July’s manufacturing and service output figures rose from 51.4 in June to 52.3 in July. Many respondents attributed the increase to gains in new work, increased client activity, promotions and marketing initiatives.

This data was nit reflective of the UK as a whole however, where work in hand figures fell again.

Job creation also rose last month, showing the most pronounced increase since 2010. Nonetheless, input costs still remained higher than the series trend, with many respondents citing higher raw material and transport costs as key factors increasing process costs.

Jonathan Walker, head of member relations at the NECC is unsurprised by the findings, which reflect the views of many of the Chamber’s members.

He commented: “There are significant challenges for many and it is a tough time to do business.

“We have however seen some limited recovery especially in manufacturing and exports.”

He is now calling for more government action to help private sector businesses boost the recovery.

He added: “We must be aware of the various risks which are still out there and the government must ensure they are aware of the risks and take action to ensure the business environment is as friendly as possible.”

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