London saw an Olympic boom last month as private sector firms enjoyed their fastest growth since March, according to the latest snapshot of the capital’s health.
London’s manufacturers and services firms are seeing an unbroken nine-month run of growth despite the UK sinking into a double-dip recession, according to the Lloyds TSB Commercial/Markit activity index. The survey, where a score above 50 signals expansion, jumped from 51.6 to 54.9 during August — the quickest pace since March.
The rude health of London’s business highlights the contrast in economic performance between the capital and the rest of the country, as manufacturers returned to growth and the pace of activity among services firms picked up as the Games rolled into town.
Growth in London was faster than all other UK regions, and firms added staff at the quickest pace for more than a year, the survey found.
Lloyds regional director Neil Mahoney said: “The improvement in business conditions was also accompanied by a build-up in cost pressures, which was in line with the trend seen across the UK as a whole. Business activity increased in both the services and the manufacturing sector in London, while job creation was also maintained for the fifth consecutive month.”
