London defies UK slowdown
LONDON was the only British region to experience an accelerated growth in May, according to a Lloyds TSB and Markit study released today.
A purchasing managers’ index (PMI) for the capital moved up to 54, from 53.7 in April. All figures over 50 indicate growth.
The figures largely reflect a slowdown in growth across the UK, with all other regions reporting more sluggish expansion than the previous month.
“Signs of a slowing global recovery provided an unfavourable backdrop in May and in turn had an adverse impact on business confidence,” commented John Maltby of Lloyds TSB.
In England the PMI dropped two points to 53.5, while across the UK it measured 53 – down from 54.7. Northern Ireland sunk further into recession (46.5), while Wales’ PMI collapsed to a two year low, indicating economic stagnation (50).
However, employment growth was recorded in all nine English regions, the rate of new job opportunities coming in at a modest yet steady 52.3 (from 52.4 in April).
“The west Midlands topped the regional employment growth table, with strong manufacturing job creation contributing to the second-steepest rise in staffing levels since the survey began in January 1997,” the report said.
The economy of two regions is still growing faster than in London; the PMI for the east Midlands held strong at 56.3 (down only slightly from 56.9 in April), while the south east excluding London measured 55.4, albeit down sharply from 58 in April.