NORTH-EAST firms reported stronger growth in business activity during February, according to the latest Lloyds Banking Group PMI report.

With output levels increasing and order books filling up, new job opportunities were created, resulting in staff levels growing at their fastest rate in 17 months.

The latest PMI reading for the region rose from 53 in January to 54.9 last month.

Any figure above 50 separates growth from contraction.

Meanwhile, the rate of inflation in businesses’ costs remained strong and continued to put pressure on firms to increase their prices.

The Lloyds PMI report is based on responses from manufacturers and service providers about the volume of goods and services produced.

The North-East findings are based on a range of questions posed to businesses across County Durham, Tyne and Wear and the Tees Valley.

Leigh Taylor, regional director for the North-East at Lloyds Bank Commercial Banking, said: “We’re two-thirds of the way through the first quarter of the year and it’s great to see businesses in such a positive place and growing at a rate that is above the UK average.

“With employment numbers rising at the quickest rate since September 2015, I am optimistic the region will continue to grow, despite increasing cost burdens.”