SW business activity growth strongest since December

South West firms enjoyed a strong month of business activity growth in April as they outstripped the UK average, with demand for goods and services continuing to increase, according to the latest Lloyds Bank UK Regional PMI survey.

The South West PMI® rose to 56.7 in April, up from 53.4 in March. A PMI reading above 50 signifies growth in business activity.

Data from April showed that businesses reaped the rewards of increased demand for goods and services, and as a result, continued to create new jobs, albeit at a slightly slower pace than in March.

Inflationary pressures on businesses’ input costs – which include raw materials and salaries – eased again in April. Despite this, firms still felt the impact of the weaker pound, which drove many to pass on their higher cost burdens to customers in the form of raised selling prices.

The Lloyds Bank PMI, or purchasing managers’ index, is the leading economic health-check of UK regions. It is based on responses from manufacturers and service providers about the volume of goods and services produced during April compared with a month earlier.

David Beaumont, regional director for the South West at Lloyds Bank Commercial Banking, said: “Business activity in the South West grew at its strongest pace since December, and outstripped the UK average.

“Businesses in the region remain optimistic thanks to rising new orders. However, cost pressures remain a concern for many, which resulted in increased selling prices for goods and services.”