Brexit may be a continued cause for concern, but business in London is booming according to latest findings.
The London economy has had a positive start to the fourth quarter of 2017, with new research showing that business growth in the capital hit a six month high in October, according to the Lloyds Bank Regional purchasing managers index (PMI).
The Lloyds Bank Regional PMI is the leading economic health-check of regions across the UK. It is based on responses from manufacturers and services businesses about the amount of goods and services produced during October compared with a month earlier. A reading greater than 50 represents growth in business activity, while a reading below 50 indicates a contraction. The greater the deviation from the 50 mark, the faster the rate of change.
The London PMI registered the fastest rate of growth since April, standing at 56.3 in October, up from 54.1 in September.
New orders also increased at the fastest rate since July and the strong business growth resulted in a boost to private sector employment in the capital.
The increase in raw materials and the rise in wage bills did however mean a sharp rise in input costs, forcing businesses in the capital to raise the price of goods and services in order to maintain margins.
Paul Evans, regional director for London at Lloyds Bank Commercial Banking, said: “As we enter the closing stages of 2017, London businesses have seen activity gain new momentum.
“Creating and securing a strong new business pipeline is key to the capital’s economy and it’s hugely encouraging to see demand increasing as we approach the end of the year. Firms continue to face hefty input costs, but if new business growth continues then they will be better-equipped to manage these.”
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