East Midlands overtakes South East as fastest growing region

The East Midlands has replaced the South East as the fastest growing region in England, according to an economic survey today.

Lloyds TSB said most English regions reported weaker growth in recent months, with only London bucking the slowdown trend.

Job creation in private firms was "modest" last month, although the picture was better in the West and East Midlands, said the report.

John Maltby, managing director of Lloyds TSB Commercial, said: "The latest regional figures are consistent with a softening of UK GDP growth in the second quarter of 2011, with Yorkshire and Humber, and the South West on track for particularly sharp slowdowns.

"Temporary factors such as the extended bank holidays in April have added to the underlying moderation in growth, with the recent disruptions to business activity especially felt among smaller manufacturing companies.

"Signs of a slowing global recovery provided an unfavourable backdrop in May and in turn had an adverse impact on business confidence. As a result, new business gains and private sector job creation remained subdued outside of the strong manufacturing-led upturn in the Midlands.

"While undoubtedly a welcome relief to businesses, the latest survey suggested that firms, especially those outside of London, are still taking a hit to their margins rather than fully passing through cost rises to their clients."