London firms’ expansion slows amid broader decline in growth

London businesses are growing steadily despite the rate of growth slipping to a five-month low in May, new survey figures show.

 

A business activity purchasing managers’ index compiled by Lloyds Bank dropped to a score of 57 for London from April’s 60.2, according to data published today.

 

Scores above 50 indicate an expansion in business activity, with higher numbers implying faster growth. 

 

The PMI for the UK fell to 55.8 in May from 58.4. The fastest growth was in the north east where the PMI scored 59.7 which compared to Scotland, the lowest, at 51.9. 

 

 

Growth rates in Yorkshire and the West Midlands fell to the lowest for two years.  

 

Despite the widespread slowdown in the PMIs, hiring stayed at historically strong levels. 

 

“It’s encouraging to see positive growth and solid improvements in business performance during May,” said Tim Hinton, a managing director at Lloyds Bank. “While there has been a slight slowdown in economic growth and a reemergence of inflationary pressures, the overall outlook is strong for the UK. Businesses have good reasons to remain confident and should continue to invest in their growth ambitions.”