Partner Article

Third quarter starts on firm footing

THE North East has made a solid start to the third quarter with a marked rise in business output and new business activity and employment continuing to rise.

However, the latest North East PMI figures for July also show how input price pressures remained considerable, while strong competition continues to constrain firms’ pricing power.

Demand for North East private sector goods and services improved in July, as signalled by a marked rise in new business to the region.

Although slower than in June, the latest increase remained sharper than the UK average. Respondents stated that a more favourable economic environment had boosted sales levels.

North East private sector output grew at a marked and accelerated rate in July. At 55.3, up from 54.6 in June, the latest seasonally adjusted Business Activity Index reading was the highest for three months and slightly above the UK average.

Allan Little, principal economist at One North East, said: “July’s index again saw an improvement in both output and new business but whilst growth was a little slower than in the early months of 2010, North East business activity continues to compare well against the UK as a whole.”

This was posted in Bdaily's Members' News section by Ruth Mitchell .