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9:27 am, February 8, 2010
Regional employment grows for first time in 22 months

By Michael Fahy

Employment in the region grew for the first time since April 2008 as the North West outperformed the rest of the UK in terms of output, new business and employment, according to new research.

Data analyst Markit's latest figures show that its Business Activity Index, which measures the combined output of the region's manufacturing and service sectors, increased to 57.4 from 55.9 in December. This is the largest monthly increase since July and is based on a spurt in new orders. The firm said that both manufacturers and service firms were reporting increases in orders which, following a long shrinkage in headcount, was now causing capacity pressures.

The boost in employment numbers ran contrary to national trends, and Markit said that the indications were that the trend was likely to continue in coming months as lead- times for order deliveries lengthened.

However, firms also said that their own input costs were continuing to rise – particularly as prices for fuel, paper products and certain plastics – although the rate of price increases slowed marginally.

Steven Broomhead, chief executive of research sponsor the North West Regional Development Agency, said the figures provided “positive signs for the sustainability of recovery in the region”.

“The latest PMI data provides encouraging pointers for the Northwest economy. The survey shows activity in the region has strengthened further and the level of new orders has continued to rise,” he said.

COMMENTS? mfahy@crain.com