North West job numbers fall despite continued economic uptick

The North West’s private sector continued to bounce back in September as businesses saw an increase in output and new orders for the second month running, according to new data.

The latest Lloyds Bank purchasing managers’ index (PMI) survey found that companies linked new order growth to an increased demand from both UK and overseas clients, with exports receiving a boost due to the weak pound.

However, the dip in the value of the pound also suppressed business’ profit margins, with input prices growing at the strongest rate in over five years.

The North West PMI stood at 53.8 in September in comparison to August’s seven-month high of 55.7, signalling an increase in business activity but at a slower rate.

Elsewhere, September also saw employment decrease for the second consecutive month.

The region’s marginal job losses contrasted with a UK-wide trend where job creation was at its fastest since April.

Martyn Kendrick, Lloyds Bank Commercial Banking’s regional director for SME banking, said of the findings: “Although business levels grew slightly less quickly than in August, the latest survey data suggest the upturn in the North West private sector economy continued last month, as both outputs and new orders rose at rates broadly in line with UK-wide trends.

“However, the improvement in the economy wasn’t enough to encourage firms to take on additional workers, as employment declined for the second consecutive month.”

He continued: “With average costs rising at the fastest rate in more than five years, businesses will be seeking to streamline operations, and it’s vital that company leaders plan carefully for any challenges that they might face.”

The Lloyds Bank PMI data is based on responses from services businesses and manufacturers to questions regarding the value of goods and services produced in September, in comparison to the month previous.

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