BUSINESS conditions across the North West have improved for the 14th consecutive month – but slowed in the second quarter compared with the first.

The latest PMI (Purchasing Managers’ Index) showed output and new business grew sharply in June, although staffing dipped slightly, mainly due to recruitment freezes and restructuring.

The region’s combined service and manufacturing sectors posted a business activity index for June of 57, where 50 represents no change.

However, this compares with 58.8 in May, and the rate of output growth is now the slowest since December, 2009.

Respondents also reported inflationary pressures driven by greater fuel and raw materials costs.

Consequently, companies raised their charges last month at the highest rate in almost two years.

Stephen Broomhead, chief executive of regeneration body the Northwest Development Agency (NWDA), said: “The latest PMI data provides further encouraging pointers for the North West economy, bringing the current run of continuous positive growth to 14 months. We should be optimistic, as both output and new business continues to rise. However, we need to remain focused and cautious as the rate of expansion was weaker this quarter, compared to the first quarter of the year.”

PMI figures have become the most closely-watched business surveys, and are favoured by financiers as up-to-date and accurate measures of economic trends.

The NorthWest PMI examines data from a panel of companies across the region in the service and manufacturing sectors.