The north west saw business activity growth rise for the third month running in September, according to a new report.

Firms saw a rise in orders and remained confident though job creation slowed to an 11-month low.

This information has appeared in the latest Lloyds Bank Regional Purchasing Managers Index (PMI) report which shows a reading of 55.7 last month, higher than the UK average of 54.1 and above August’s reading of 55.1. A reading above 50 shows growth in output, whereas a reading below indicates decline.

It is based on responses from manufacturing and services businesses about the amount of goods and services produced during the last month compared with a month earlier.

The cost of labour and weakness of the pound resulted in higher input costs, which were partly passed on to clients through higher prices.

Martyn Kendrick, regional director for the north west at Lloyds Bank Commercial Banking, said: “As we enter the final quarter of 2017, businesses in the consumer goods and hospitality sectors will need to ensure they have the working capital necessary to take advantage of higher demand from events like Black Friday, Christmas and New Year.

“Last month our Working Capital Index report found that businesses in the north west have £60.5bn tied up in excess working capital, which includes assets like stock and invoices. Cash that’s tied up in working capital can be released and invested in creating more stock or building capacity to meet higher demand over the festive season.”