GROWTH in London’s business activity has plummeted to near-stagnation, according to the latest purchasing managers’ index (PMI) from Lloyds TSB and Markit.
The index fell from a reading of 54.4 in September to a 14-month low of 50.4 last month, the survey showed. Scores of above 50 indicate some economic expansion.
“Behind the overall slowdown was a sharp moderation in new order growth, which in turn enabled firms to complete work outstanding,” said Neil Mahoney of Lloyds TSB. “Meanwhile, firms again displayed a reluctance to hire, with job creation only marginal in October.”
Input prices continued to rise for the capital’s firms, although input price inflation remains lower than that suffered elsewhere in the UK.