Companies across Yorkshire and Humber are cutting jobs in the wake of the strongest decline in private sector output for over three years, according to a new study of business activity.
Private sector output in the region declined in July for the first time in 11 months, falling faster than at any time during the past three years, according to the latest Lloyds TSB Yorkshire & Humber Purchasing Managers Index.
Well over a third of companies reported a decrease in new orders compared with the previous month and both manufacturing and the service sector reduced staffing levels in response, although overall employment only fell marginally, according to Markit Economics, who carried out the survey.
Input costs fell faster than at any time for more than three years and faster than any other UK region. Declines in fuel and crude oil prices were highlighted by a number of firms. Average selling prices for the fourth month running in the face of stronger competitive pressures and falling demand.
Lloyds TSB Yorkshire area director Martyn Kendrick said: “Growth in the Yorkshire and Humber economy gave way in July, with both activity and new business falling modestly from June.
“Job losses were also reported over the month, with both manufacturers and service providers reducing their staffing levels. The positive news from July’s survey was that input prices fell solidly from June, partly reflecting lower oil prices, with the strongest rate of decline in over three years.”