Growth of activity remains sharp in October – PMI
Activity in the East Midlands private sector economy continued to rise in October but new order growth eased to an 18-month low.
The headline Lloyds Bank Commercial Banking East Midlands Business Activity Index – a seasonally adjusted index that measures the combined output of the region's manufacturing and service sectors – posted 57.4 in October, up from 56.8 in September.
It signalled a sharp increase in activity in the region's private sector. Moreover, the rate of expansion was sharper than seen in the previous month and faster than the UK economy average.
Both the manufacturing and service sectors posted rising output, with the rate of growth sharper at services companies.
Panellists reported that higher new orders were the main driver of output growth, in turn reflecting improved economic conditions and marketing activities. However, the rate of growth in new business eased to the slowest since April 2013 and was below the UK average.
Jon Pulford, area director for SME banking in the East Midlands for Lloyds Bank Commercial Banking, said: "The sharper rise in business activity across the East Midlands in October was a welcome sign following slower growth in previous months.
"While the weaker rate of expansion in new orders suggests some loss of momentum, a faster rate of job creation indicates that companies aren't overly concerned about the recovery losing steam at this stage."