Fastest growth on record for UK businesses, according to recent survey

October figures from Lloyds Bank suggests signs of recovery for Britain’s economy

British businesses have grown at a record rate with London reported as one of the strongest areas of growth, a new survey for October 2013 released by Lloyds Banking Group reports.

Using data from over 1,200 private manufacturing and service firms, Lloyds’ regional purchasing managers’ index (PMI) found companies reporting the fastest increase in business activity since its survey began in 2001, recording a PMI number of 61.8, an increase on its neutral 50 mark.

London businesses were reported to have enjoyed the fastest economic developments with employment growth hitting a 13-year high and a PMI figure of 65.

Across England and Wales as a whole, businesses reported a surge in job creation, with the survey recording a 13-year high for employment rates.

According to the study, five out of nine English regions have seen the highest growth rates for new business in over a decade with the East Midlands one of the fastest areas of growth, second only to London.

Businesses in the North East of England and Northern Ireland reported the weakest levels of output with PMI scores of 55.3 and 57.6 consecutively.

The survey results can be seen as positive indicators for the UK economy and follows recent GDP (gross domestic products) figures released by the Office for National Statistics which reflect a 0.8% increase in UK economic growth for the third quarter of 2013.

Tim Hinton, managing director of small and medium enterprise & mid markets banking at Lloyds, commented:

“It is encouraging to see that private sector businesses have maintained the strong momentum they built up through the summer, as robust growth in business activity continued right across England and Wales last month.

“While London retained its place as the best performing region, underlying economic conditions are improving throughout the UK, indicating that the upturn is still broad-based.”

 

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