Business activity in London reaches eight-month high

Business activity in London reached its highest in eight months during September, according to a report from Lloyds Bank.

The bank’s regional PMI, which is an economic health-check of UK regions, showed that business activity in London’s private sector reached its highest rate since January, with businesses experiencing a growing demand for goods and services.

Strongest

The report showed that the level of business increased for the second consecutive month in September, with the strongest month-on-month increase in eight months.

September also saw a rise in input prices, which increased at the fastest rate in six months, whilst there was only a minor increase in prices charged for goods and services.

Business activity also continued to grow in other regions throughout the UK, with the West Midlands and Yorkshire and Humber seeing strong growth. Wales also saw a strong increase in business activity and outperformed all other regions, with a PMI reading of 56.2, the highest in 15 months.

The PMI also showed the regions with the slowest growth for business activity, with the South East being the weakest with a PMI reading of 51.6.

Maintained

Commenting on London’s business activity growth, Lloyds Banking Group Regional Director of SME Banking in London, Paul Evans, said: “The capital’s private sector economy continued to bounce back from its post-referendum low, with business activity rising at the fastest rate for eight months in September.

“Solid expansions in new business and backlogs suggest that output growth will be maintained as we head into the final quarter of the year. However, firms again had to absorb rising input costs amid strong competitive pressures.”