Output and job creation rising, says PMI
A sharp rise in job creation has meant an increase in both output and new business, according to the latest West Midlands Purchasing Managers' Index (PMI) from Lloyds TSB.
The survey indicated the region’s private sector grew at a faster rate than the previous month's eight-month low, however the June reading was still the second -lowest reading in 2011.
Private sector companies in the West Midlands took on more staff in June for the 16th time in 17 months. The West Midlands retained its job creation crown, as it made more employment opportunities available than anywhere else in the UK.
Backlogs of work fell for the fifth month running and at a similar pace to that recorded in May.
David Garbutt, area director for Lloyds TSB Commercial in the West Midlands, said: "West Midlands private sector output grew at a solid and slightly accelerated pace in June that was above the UK-wide average. A strong rise in new business received by goods producers provided a boost to the region, while lacklustre demand in the service sector reined in overall growth.
"Labour market conditions benefitted from the overall rise in activity, with the rate of job creation higher than in any other region. Cost pressures meanwhile remained elevated, despite easing again during the month."
