16 November 2012

Private Sector Output Increases, Helps Wales Economy

The Private Sector output in the UK was measured on the month of October 2012, a study concluded that the biggest increase in business activities was noted in Wales, as a result it has helped the regional economy. The source is the Lloyds TSB Wales Purchasing Managers’ Index (PMI). Furthermore, Wales is experiencing new business growth which is being the fastest for the last 20 months.

Nevertheless, there is still a considerable gap between the manufacturing and service sectors outputs, where manufacturing has produced the highest expansion output, while on the other hand the service sectors have shown a decline. With regards to new business both sectors have had an increase whereas the service sectors showed an increase since February 2011.

Further to the study is was also reported that the overall volume of work outstanding has continued to decline, despite a ratio increase in new business.

Allan Griffiths, area director for Lloyds TSB Commercial in South and West Wales stated: "Wales recorded the best private sector performance across the UK in October, with activity and new business growth both rising at the fastest pace for over a year-and-a-half," he said. "Much of the strength remains concentrated in manufacturing, although there were signs of a stabilisation in the service sector. There was a slight fall in employment, although anecdotal evidence shows that this was due to firms not replacing leavers, as opposed to actual redundancies."