by business editor Trevor Sturgess

Jobs growth in the South East's private sector during July continued for the fourth consecutive month, figures released today reveal.

Statistics compiled for the South East PMI (Purchasing Managers' Index) report on behalf of soon-to-be axed regional development agency SEEDA also signalled a further improvement in business conditions during the month, though at a slower pace.

Total business activity rose for the thirteenth successive month in July. The rate of expansion was solid overall and slightly faster than the UK-wide trend, but moderated since June. Overall, growth was the slowest in 10 months and slightly weaker than the long-run average.

The growth of new orders for the manufacturing sector was said to be relatively strong, compared with new business in the services sector.

The rate of job creation eased from June's 27-month high, but was nevertheless greater than the long-run series average. Workforce growth was evident in both the manufacturing and service sectors.

Average input prices paid by companies in the South East private sector rose for the 10th month running in July. The rate of input cost inflation eased to a seven-month low, but remained slightly above its long-run trend. Sources of rising costs included chemicals, timber, paper, metals, fuel, foodstuffs and salaries.

Commenting on the South East PMI survey, Paul Lovejoy, SEEDA's executive director, said: "Even though activity and new work lost momentum in July, it is encouraging to see employment growth maintained, now for the fourth consecutive month. Fortunately, the inflationary gap between input and output prices has reduced to its lowest level over the past six months. This is an encouraging piece of news as a higher profitability may enhance the investment intentions of South East private firms."

• The South East PMI features original survey data collected from a representative panel of companies based in the South East and operating in both manufacturing and service sectors.