Member Article

North East job creation at record high

The rate of job creation in the North East is at a record high despite overall output decreasing, the latest Lloyds Bank study has revealed.

North East private sector companies raised their staffing levels again in January, but growth of business eased at the start of 2014, following the sharpest expansion of new orders in the series history during December.

While growth eased from December, companies signalled further expansions of output and new orders at the start of this year.

The Lloyds Bank Commercial Banking North East Purchasing Managers Index – a seasonally adjusted index that measures the combined output of the region’s manufacturing and service sectors - posted 56.8% in January, down from 60.4 in December.

The figure represents the satisfaction of respondents to the study reporting an improvement, no change or decline in local business conditions.

While the region saw the slowest rise in new business for four months, growth of new work in the North East remained above the UK trend, amid reports of improving client demand.

Commenting on the Lloyds Bank Commercial Banking North East PMI survey, Craig McNaughton, area director SME Banking in the North East and Cumbria, Lloyds Bank Commercial Banking, said: “Private sector firms across the North East recorded strong business activty and new order growth at the start of the year, indicating that business conditions had continued to improve across the region.

“Although growth had eased from the previous month, firms responded to higher workloads by raising their staffing levels, with the strongest increase in six months. Companies in the North East also benefitted from relatively muted input price inflation. However, competitive market pressures led firms to cut their average tariffs over the month, which may squeeze profit margins.”

This was posted in Bdaily's Members' News section by Graham Vincent .