Growth slows in West Mids, says PMI
Growth in West Midlands business activity rose at its slowest rate for eight months during May. The region also experienced a slower rise in incoming new business, according to the latest Purchasing Managers' Index (PMI) from Lloyds TSB.
Companies in the West Midlands reported another drop in their backlogs of work as a result of the slowdown.
However, despite the downturn of activity, job creation in the region accelerated in May, reaching a three-month high.
The manufacturing sector remained the principal driver of expansion and recruitment, according to the research, which measures the combined output of the region’s manufacturing and service sectors.
David Garbutt, area director for Lloyds TSB Commercial in the West Midlands, said: "Expansion of West Midlands output slowed in May as growth of new business weakened further. The region has benefited in recent months from a strong performance from its manufacturers, but growth here is now easing in line with the overall UK manufacturing trend, while service sector conditions remain fragile.
"Job creation picked up to a solid pace in May, but slowing new orders and falling backlogs of work suggest it is unlikely this can be sustained barring an improvement in workloads."
