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New orders climb at North East businesses

The rate of new orders across November at North East private sector businesses grew at its fastest pace since 2010, a purhase managers’ index has shown.

Both manufacturers and service providers saw higher volumes of new business, amid reports of stronger client demand, according to the Lloyds Bank North East PMI.

The activity index, which is fact-based as opposed to opinion, showed the strongest raise in business activity in 32 months.

Private sector firms in the North East raised their staffing levels for the fifth successive month in November. Though modest, it was one of the strongest rates of job creation in nearly two years.

Sector data indicated that payroll growth was centred on service providers in the region.

Average input costs faced by private sector companies in the North East rose solidly in November. However, inflation in the region was below the UK private sector economy average.

Similarly, selling prices increased at a faster rate in November, with a number of panellists citing higher cost burdens.

Commenting on the survey, Craig McNaughton, area director SME Banking in the North East and Cumbria, Lloyds Bank Commercial Banking, said: “The North East private sector economy recorded a further strong expansion of business activity in November, which was supported by the strongest increase of new orders since March 2010.

“Meanwhile, employment levels in the region increased at a relatively modest rate, contributing to a further solid accumulation of outstanding work.

“Increasing inflationary pressures in the region are squeezing profit margins and this may have been a factor holding back staff hiring in November.”

This was posted in Bdaily's Members' News section by Tom Keighley .