PRIVATE sector activity in London climbed to its highest level in seven months in December with firms in the capital reporting a sharp increase in new orders at the end of the year, according to a new survey.

Natwest's London purchasing managers' index (PMI) climbed to 58.2 in December, up from 56.5 the month before. The 50-mark separates growth from contraction.

Firms in the capital saw new business orders accelerate in December taking the new business index to its highest level since May.

The index, which measures the month-on-month change in output of London's manufacturing and services sector, showed a particularly strong performance from IT firms and financial firms. Hotels, restaurants and caterers also saw a strong December.

The expansion in new orders was "easily the sharpest" among all monitored regions in the UK, the report noted, with the West Midlands and South West the only other regions to record increases. With demand rising, business optimism in the year rose to its highest level since March 2022.

(c) 2024 City A.M., source Newspaper