Booming Britain’s economy is surging

BRITAIN’S economy hit a six-month high last month thanks to rising demand and low unemployment, a survey showed yesterday.

Wales led the way, with the quickest growth rate for the second month in a row as output rose to a nine-month peak.

It was closely followed by the North-west and the East of England, which both recorded sharp expansion, while growth in North-east England reached a 10-month high.

The latest Lloyds Bank Regional Purchasing Managers’ Index is seen as an important “health check” indicator of business confidence and activity.

Factors that it takes into account include employment, prices and manufacturing costs.

Only the South-east of England, the East Midlands and Northern Ireland showed a slower rate of growth than previously, but they were nevertheless still growing.

The latest figures show that business activity across the UK hit a six-month high of 55.8 in October – just under the of 56.2 recorded in April. A reading greater than 50 represents growth.

Demand

Scott Barton, managing director of Mid Markets at Lloyds Banking Group, said: “The fourth quarter of 2017 started positively, with business activity growth accelerating across England, Scotland and Wales. There was also an increase in employment as firms responded to higher demand for goods and services, though the pace of job creation slowed for the second month running.”

All parts of the country recorded an increase in employment in October, most strongly in Yorkshire and the Humber and in eastern England, although the overall pace of job creation in the UK dipped to a four-month low.

The survey also showed the steepest rise for six months in average prices charged for goods and services, as businesses seek to offset the impact of higher costs.

The survey, compiled by IHS Markit for Lloyds Bank Commercial Banking, was based on questionnaires sent to purchasing executives in more than 1,200 private manufacturing and service companies.

Official inflation figures are out today, with many economists expecting the rise in prices to have peaked in the year to October before starting to fall back. Employment figures due tomorrow are forecast to show another fall in joblessness.