Economic activity increases in West Mids
The West Midlands posted the second fastest rise in activity of all UK regions in April. According to the latest Lloyds TSB Commercial West Midlands PMI statistics, the region was one of the UK's top performers in the month, despite it having the slowest rise in new orders for five months.
The business activity index – which measures the combined output of the region’s manufacturing and service sectors – registered 57.5, up from 56.5 in March.
Growth of employment in the West Midlands eased to a four-month low in April, although it remained above the UK average, said the PMI. The manufacturing sector remained the biggest source of job creation.
David Garbutt, area director for Lloyds TSB Commercial in the West Midlands, said: "The strength of output growth in the West Midlands bucked the UK trend in April.
"A robust manufacturing sector performance was the main driver of expansion, in line with the pattern seen in recent months. However, there are signs that activity growth could be set to ease over the summer. New business rose at the weakest pace in five months during April, while evidence of spare capacity was provided by a sharper fall in backlogs of work.
"In addition, inflationary pressures continued to build amid increases in fuel and raw material prices. The region’s businesses therefore face an uncertain outlook, particularly in light of the wider pressures facing consumer spending and government budget cuts."
