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Commenting on the release of March’s PMI Business Survey Data, produced for The Royal Bank of Scotland by NTC Economics, RBS Senior Economist Robbie Denoon said:
“The South West economy continued to expand at a marked pace in March, with growth of output, new orders and employment all rising. Employment growth fed through to a further decline in the backlog of work while the slowing rate of input costs is also a positive sign for the region’s economy.”
Key Findings
- March’s South West PMI® Report signalled a further expansion of the region’s private sector economy. The seasonally adjusted Business Activity Index rose to 59.7, from 57.0 in February, signalling a rate of growth above the UK average.
- Volumes of incoming new business rose at the fastest rate for three months, with panellists reporting that promotional activity, in addition to strong demand, had underpinned the growth of new orders.
- Unfinished business declined for the fourth consecutive month in March, and at a rate that was broadly in line with the national average. There were some reports of improved production efficiency contributing to the decline of outstanding business.
- Employment levels increased at the fastest rate so far this year and at a rate above the UK average for the fourteenth consecutive month. Service providers signalled sharper employment growth than manufacturers.
- Panel members continued to report a sharp increase in their average costs in March, although the rate of input price inflation was the slowest for five months. There were reports of higher prices for timber and various other raw materials.
- Output price inflation remained robust during March with panellists indicating that they had raised their prices in an attempt to pass on higher average costs to customers. However, the rate of output price inflation was below the UK average for the first time since last October.
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