Yorkshire & Humber became the fastest growing region in England and Wales in terms of output in July, according to the latest Lloyds Bank Regional Purchasing Managers’ Index (PMI).
The North East of England recorded the only decrease in business activity, ending an 11-month period of growth in that region.
Business activity increased across England and Wales for the 12th month in a row in July, rising at a steady pace, according to the Lloyds report.
England’s business activity index – a measure that tracks changes in the total output across the manufacturing and service sectors – registered 54.4 in July, little-changed from June’s nine-month low of 54.3.
The Lloyds Bank Regional PMI is based on businesses in the manufacturing and service sectors.
A reading greater than 50 signifies growth in business activity, while a reading below 50 signifies a contraction.
The greater the divergence from the 50 mark, the faster the rate of change.
Yorkshire & Humber (58.0) overtook the West Midlands (56.7) to become the fastest growing region in terms of output in July, with the East Midlands (55.9) the third-best performer.
The North East (48.6) recorded the only decrease in business activity.
Tim Hinton, Managing Director and Head of Mid-Markets and SME Banking, Lloyds Banking Group said: “Business activity continued to grow at a steady pace in July similar to the previous month’s performance.
“Job creation improved to show the strongest rise in employment for 18 months, boosted by particularly strong growth in the West Midlands and Yorkshire & Humber.
“Strong price pressures remain a concern for businesses with costs rising at a faster rate for a second month in a row which is feeding through to higher prices for goods and services.”