Companies across Yorkshire have rebounded from the downturn to record stronger growth than at any time during the last six months.
According to the latest edition of the Lloyds TSB sponsored Purchasing Managers Index, produced by Markit Economics, there was a solid increase in business activity in August after a decline in July, but prices declined.
Firms said output increased thanks to a rise in new work during August and the volume of outstanding business fell for the fourth month in succession.
Private sector employment increased, reversing a fall in July, but the rate of job creation was marginal and almost three quarters of firms kept staffing levels unchanged.
Lloyds TSB Commercial area director, Martyn Kendrick, said: “After the first reduction in private sector output in almost a year during July, Yorkshire and Humber bounced back with overall business activity rising solidly in August.
“This partly reflected an increase in new business, which was also in contrast to a decline recorded in the previous month.
“Despite this, employment remained low, with the latest data pointing to only a marginal rise over the month.
“The rebound in Yorkshire and Humber reflected a strong performance of the service sector, with manufacturing continuing to lag behind.”