Lloyds Bank PMI shows London employment and business activity growth
The latest Lloyds Bank Regional Purchasing Managers’ Index (PMI) has shown a boost in business growth and employment in London for the month of May.
The PMI, which is an economic health check of the UK’s regions, showed that business activity grew at a faster rate in London than in the rest of the UK last month, with rising business demand helping to boost employment levels in the city.
The PMI compared the amount of goods and services produced in May with April and showed that while business growth in London was slower than in April, the city’s reading of 55.7 in May was still higher than the UK average of 54.4.
This increase in business activity has helped create new jobs, with employment levels in London continuing to increase, a trend that hasn't changed over the past seven months.
May was also found to be an easier month for businesses in terms of costs, while prices charged by businesses increased at the slowest rate since February this year.
Lloyds Bank Commercial Regional Director for London, Paul Evans commented: “Firms in London are reporting a healthy environment for business activity.”
He also stated that output growth in London, powered by strong demand for goods and services, is outpacing the rest of the UK and leading to a solid rise in jobs. Inflation in customer prices and cost pressures eased last month too which is good news for the capital’s businesses and customers.