BUSINESS output fell in the North East last month, a new survey has revealed today.

Seven areas recorded growth in the Lloyds TSB Regional Purchasing Managers’ Index, but the North East and South West saw lower output.

Overall, the seasonally adjusted index of activity in England stood at 51.1, above the no-change mark of 50 for the fourth consecutive month but showing a marginally slower pace than the four-month high of 51.6 in January.

The survey also revealed that staffing levels remained resilient in almost all regions in February, including the North East.

David Oldfield, Lloyds director for SME & mid-markets banking, said: “Businesses kept up growth in February and there was a welcome gradual rebound in demand following the decline seen at the end of last year.

“These further rises in employment suggest that despite economic uncertainties at home and abroad, businesses are still finding opportunities for long-term expansion and are focused on developing their long-term business plans.”

Despite the signs of encouragement on new orders, cost pressures intensified in February, with six of the nine regions reporting higher rises in input costs than the previous month. This was partly due to fuel and utility bills.