London and the East lift UK economic growth as Scotland and the North East contract

Chris Papadopoullos
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London's economy is growing faster than most of the rest of the country (Source: Getty)

London was the second fastest growing region of the economy last month, according to a new business survey.

Lloyds Bank’s regional purchasing managers’ index (PMI) scored 57 for London, above the 50 level that signals no change in business activity on the previous month.

While it mark a slowdown in London’s economic growth – Octobers PMI was 57.2 – the capital’s expansion rate was only behind the East’s, which scored 57.6.

Scotland and the North East scored below 50, indicating that the regions’ economies were in contraction. The UK as a whole scored 56, a four-month high.

“The latest rise in the index is encouraging to see as it recovers further from its recent low in September. Although we have seen various challenges in 2015, the UK economy is on course for a robust final quarter, consistent with positive growth across the year,” said Gareth Oakley, a managing director at Lloyds Bank.

Figures from the Office for National Statistics published last week showed economic growth per person in London was 5.3 per cent in 2014, the highest in the UK.

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