Yorkshire and Humber employment growth speeds up

Yorkshire and Humber employment growth speeds up

Businesses in Yorkshire hired staff at the highest rate of the year so far during October, according to the latest Lloyds Bank Regional Purchasing Managers’ Index (PMI) survey.

The increase comes after September’s figures revealed the first month of employment growth in Yorkshire since January.

Business activity in the region also rose during the month at the sharpest rate since June 2015, driven by the largest increase in new orders in more than a year-and-a-half.

The Yorkshire & Humber’s PMI® rose to 57.9 in October, up from 55.6 in September, signaling a marked expansion of business activity in the region that was above the UK average (54.8). A reading of 50 or above signals growth, whereas a reading below indicates decline.

Companies reporting higher new orders linked this to greater demand from international clients because of the weaker pound. However, the weaker pound was also linked to input prices – including raw materials and salaries – increasing at the sharpest rate in five-and-a-half years during October.

The Lloyds Bank Regional PMI is an economic health-check of UK regions, based on responses from manufacturers and services businesses about the volume of goods and services produced during October compared with a month earlier.

Leigh Taylor, regional director for Yorkshire at Lloyds Bank Commercial Banking said: "The Yorkshire & Humber private sector economy started the fourth quarter on a strong footing.

"Activity growth picked up to a 16-month high, driven partly by a boost in international demand resulting from currency weakness.

"Payroll numbers rose at the fastest rate so far this year, however businesses’ cost pressures increased to the greatest extent in five-and-a-half years, leading to a strong rise in average prices charged for goods and services."