Selling prices by businesses in the East of England fell in March for the first time in 20 months in March, as discounts by manufacturers offsetting higher rates charged by services firms, according to a purchasing managers survey. Overall, uncertainty ahead of the general election meant business activity in the East of England grew at a slower pace in March and jobs growth slowed although new business wins by firms picked up sharply. The Lloyds Bank East of England business activity index fell from 55.9 in February to a 22-month low of 54.8 in March, weaker than the UK average. Although overall output rose in line with higher flows of new business, the survey said that uncertainty leading up to the elections weighed on growth.
But amid reports of stronger demand, new business wins and improved market conditions, incoming new work rose further in March with sharp expansion at both manufacturers and services firms.
Backlogs of work rose but jobs growth in the region fell to its weakest since last August but was in line with the UK average.
The rate of inflation picked up in the year to the quickest in the year-to-date, but was well below the series long-run average.
Steve Elsom, area director for SME Banking in the East of England, Lloyds Bank Commercial Banking, said: “Business conditions in the East of England continued to improve at the end of the first quarter of the year, but output growth lost momentum in March, possibly due to uncertainty arising from the upcoming election. With incoming new work rising at an accelerated pace, it is likely that the growth slowdown may be short-lived as we move into the second quarter of 2015.”