A survey published by Markit PMI data reveals that London and the west Midlands are leading UK economic growth.
UK economic growth increased in March according to Markit PMI data, with London and the West Midlands leading the charge.
“The latest survey confirms that there has been a solid pick up in momentum across the English regions, and this is yet another sign that a double-dip recession may well be avoided,” says John Maltby, group director of Lloyds TSB Commercial.
Manufacturing, construction and service sectors all experienced accelerated growth during March. The service sector, which accounts for almost three quarters of the UK’s economic output, saw growth rebound by 0.7% after a decline of 0.1% in the final quarter of 2011.
London saw its private sector PMI figure rise by 3.2 points to 58.2 in March, which is well ahead of the UK average of 55.
With a PMI figure of 60 in its business activity, the West Midlands reached its highest level since September 2007. The same area also experienced a rise in private sector employment from 53.1 in February to 54.8 in March.
In the South East, business output increased from 53.8 in February to 55.1 in March.
The only regions in which PMI figures dropped were Yorkshire and the Humber and the North East.
Yorkshire’s output fell by 0.8 of a point to 53.5 in March. In the North East private sector there was a decrease of two points to 48.1 with the manufacturing sector suffering the most. In addition employment in the North East reached a 25 month low of 50.3.
Increase in business confidence in both the construction and service sectors together with rosier figures for economic growth will hopefully reduce fears of a double-dip recession in the UK.