Yorkshire and the Humber economy makes healthy start to 2017

Business activity in Yorkshire and the Humber grew at a faster rate than the UK average for the second consecutive month in January, according to Lloyds Bank Regional Purchasing Managers’ Index (PMI) survey.

The Yorkshire and Humber PMI registered at 57.2 in January, down from 57.7 in December.

Despite this growth easing slightly, activity still expanded faster than the UK average (55.5). A reading of above 50 shows growth, whereas a reading below signals decline.

Boosted by an increase in new orders, companies across the region also continued to create new jobs, but the rate of expansion was at a four-month low.

The weakness of sterling continued to put pressure on businesses, with input prices, which include raw materials and salaries, rising at the quickest rate since April 2011.

The Lloyds Bank Regional PMI, which is an economic health-check of UK regions, is based on responses from manufacturers and services businesses about the amount of goods and services produced during January compared with a month earlier.

Leigh Taylor, regional director for SME banking at Lloyds Bank Commercial Banking, said: “The health of the Yorkshire & Humber economy continued to improve at the start of 2017.

“Business activity and new orders rose at marked rates that outstripped those seen at the UK level.

“However, the weakness of the pound contributed towards rising costs, which also led to higher prices charged for goods and services.”