SW businesses enjoy another month of growth in March

South West businesses experienced another solid month of growth during March, with demand for goods and services rising and job creation outstripping the UK average, according to the latest Lloyds Bank UK Regional PMI survey.

The South West PMI® fell marginally to 53.4 in March, down from 53.5 in February. A PMI reading above 50 signifies growth in business activity.

Data from March showed that new business orders expanded in the region, resulting in the creation of new jobs, and business confidence towards growth prospects rose to a ten-month high.

The rate of inflation for input costs – which include raw materials and salaries – eased in March to the slowest in three months. Despite this, average prices charged by firms for goods and services increased at a faster rate.

The Lloyds Bank PMI, or purchasing managers’ index, is the leading economic health-check of UK regions. It is based on responses from manufacturers and service providers about the volume of goods and services produced during March compared with a month earlier.

David Beaumont, regional director for SME banking in the South West, said: “Growth in business activity softened fractionally in March but there’s a lot for firms to be positive about - new business continued to expand at a solid rate and employment rose faster than across the UK as a whole.

“However, cost pressures remained a concern, and firms in the South West have been pushed to pass cost increases on to their customers through higher selling prices. Even so, business confidence remains high.”