West Mids employment down, says PMI
Job cuts in the West Midlands' private sector have been recorded for the first time in 14 months, the latest Purchasing Managers' Index (PMI) has revealed.
The Lloyds TSB PMI said that employment fell for the first time in more than a year during November, which contributed to a weaker decline in backlogs of work.
Despite new business increasing at the slowest pace in four months, the rate of business expansion was solid and slightly quicker than in October, said the report.
The business activity index – which tracks the combined output of the region’s manufacturing and service sectors – recorded 53.8, up from 53.4 in October.
Backlogs of work continued to fall in November, as has been the case in each of the past ten months. But the rate of contraction eased to the slowest since June.
David Garbutt, area director for Lloyds TSB Commercial in the West Midlands, said: "The West Midlands continued to outperform most other UK regions in November, showing further solid output growth. However, employment fell for the first time in 14 months, suggesting a degree of uncertainty among companies over business prospects.
"Cost inflation decreased to its lowest for over two years, which will ease pressure on profit margins and may provide scope for some discounting in coming months if demand begins to falter."
