Bad news for business?
According to the Lloyds Bank Regional PMI (purchasing managers’ index) London Businesses have seen a slowdown in growth.
Following last month’s eight-month high, private sector businesses in London have started to struggle with output and new orders rising at a weaker rate.
The London PMI fell from 54.3 to 52.8 in October. The UK as a whole registered at 54.8.
The Lloyd’s Bank PMI is based on responses from manufacturers and service businesses about the volume of goods and services produced during October compared with a month earlier. A reading of above 50 signifies business expansion whereas a reading below shows contraction.
The level of new work received by the capital also rose at a slower pace last month, some firms explained of the uncertainty surrounding the EU Referendum.
Salary pressures, rising fuel prices and currency weaknesses have also resulted in higher input costs.
Paul Evans, regional director, SME Banking in London, Lloyds Banking Group, said: “London’s private sector failed to build on the growth momentum experienced in September at the start of the fourth quarter.”
“Although the data showed positive growth in output and new business, this was less than the month before and below the UK average.”
“Some companies reported that increased competition and ongoing uncertainty around the UK’s decision to leave the EU had dampened demand. Moreover, while the recent fall in the pound is seen as a blessing by some exporters, firms faced the strongest rate of input cost inflation for over eight years.”