The growth in new business activity in the Midlands has slowed to its lowest rate in ten months in April, according to independent research.
The latest Lloyds Bank Commercial Banking West Midlands PMI report revealed the region’s private sector economy lost further momentum at the start of the second quarter.
Activity growth slowed further from the survey-record high seen in February to the weakest in ten months.
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The PMI (purchasing managers’ index) is a monthly survey of companies and offers an insight into what is really happening in the private sector economy by tracking variables such as output, new orders, employment and prices across both manufacturing and service sectors.
The report, conducted for Lloyds by Markit Economics, reflected a moderation in growth of incoming new business.
Backlogs of work were depleted at a sharper rate, partly reflecting a faster increase in staffing levels.
Input price inflation remained subdued, while output charges fell for the first time in almost a year.
Lloyds’ West Midlands Business Activity Index – which measures the combined output of the region’s manufacturing and service sectors – posted 56.9 in April, down from 58.2 in March. Although still reflecting a robust rate of expansion, the latest reading was below that registered for the 海角视频 as a whole (59.2).
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New business growth also eased in April. The latest rise in new work received by West Midlands private sector companies was the least marked for a year.
Employment in the West Midlands private sector continued to rise in April. The rate of jobs growth was quicker than in the previous month, but modest overall and weaker than the 海角视频 average. Increases in staffing levels were centred on the manufacturing sector.
Outstanding business in the West Midlands private sector decreased for the second month running in April. Moreover, the rate of decline in backlogs accelerated to the sharpest for just over a year.
The rate of input price inflation in the region’s private sector remained muted during April. The latest increase in costs was modest and only fractionally sharper than March’s 19-month low.
Output prices in the West Midlands private sector meanwhile decreased, albeit marginally. This was the first reduction in charges for 11 months, and in contrast to a further rise across the 海角视频 overall.
Andy Youngman, area director SME Banking in Birmingham, Lloyds Bank Commercial Banking, said: “Output growth in the West Midlands weakened further from February’s peak in the latest survey period, hitting a ten-month low.
“This mirrored a weaker rise in new business intakes.
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“Moreover, backlogs of work fell at their most marked in just over a year, suggesting ample spare capacity.
“The region seems to be entering a period of slower, but still robust, expansion following the rapid growth spurt seen around the turn of the year.”