The region’s recovery accelerated in March as both activity and new business grew at faster rates and staffing levels increased for the first time in nearly two years, according to a survey of purchasing managers.
A seasonally adjusted East of England PMI business activity index rose to 55.3 in March, from 53.9, previously although growth in the region remained weaker than the UK average. New clients and improved weather helped activity and new orders at firms in the region rose for the 11th month running. Manufacturers led increased staffing levels.
However input costs at East of England companies continued to rise in March – albeit at a slower rate than the previous month - due to higher fuel and raw materials costs. Andrew Harker, economist at Markit, said: “Although output in the East of England continued to rise less quickly than the UK economy average, sharp new order growth suggests that this divergence may begin to narrow in coming months. An increase in employment, albeit only modest, also bodes well for the future.”
