Growth in East of England continues to out-pace UK average, Lloyds Bank PMI survey reveals

Steve Elsom of Lloyds Bank.

Steve Elsom of Lloyds Bank. - Credit: Archant

Growth in new orders, output and employment in the region eased slightly last month but remained ahead of average for the UK as a whole, according to the latest Lloyds Bank East of England PMI (purchasing manager’s indes) survey.

The overall Lloyds Bank East of England Activity Index, based on reported changes in output compared with the previous month, dipped to 54.6 in May from 55.0 in April but remained well ahead of the UK average of 53.0.

This represented a 42nd cosecutive month of growth for the region, with both the manufacturing and service sectors reporting increases output.

Growth in new orders slowed, from an index reading of 57.8 in April to 54.7 last month, which was the weakest growth since April 2013 but still left the East of England ahead of the national average of 51.4%.

And it was a similar picture for jobs, with the region’s index reading dipping from 54.3 to 53.2, the slowest growth of two-and-a-half years but still comparing favourably against the national figure for May of 50.9.

Steve Elsom, regional director for SME banking in the East England at Lloyds Bank Commercial Banking, said: “The East of England private sector economy remained in growth territory, with May seeing further robust increases in new business, output and employment.

“The survey highlighted slowdowns in expansion rates, but the region nevertheless performed well relative to the UK as a whole. Looking ahead, the upturn in activity is likely to be sustained in coming months, supported by improving demand conditions.”