BUSINESS activity growth in the south east lost momentum in August, according to the latest Lloyds Bank Regional Purchasing Managers’ Index (PMI).

The South East PMI registered an 11-month low of 53.3 in August, falling from 54.1 in July.

A reading greater than 50.0 signifies growth in business activity, whereas a reading below signals contraction.

The index is based on responses from manufacturers and service providers about the volume of goods and services produced during August compared with a month earlier.

The slowdown in output growth was accompanied by the smallest increase in new business since November last year.

Businesses faced rising input costs, resulting in higher prices charged for goods and services. Prices rose for the 24th consecutive month.

Despite this loss of momentum, job creation increased in August, albeit remaining slower than the UK average.

Phil Kirk, regional director for SME banking in the South East at Lloyds Bank Commercial Banking, said: “The region experienced its weakest growth since September, 2016 and performed poorly compared to the rest of the country.

“Sterling’s weakness stimulated demand from overseas, but it also continued to impact the spending power of firms and their customers.

“On the bright side, businesses continued to recruit at the fastest pace since April.”