Businesses across Kent and the south east have seen a pick-up in jobs and activity, according to a survey.

The latest Purchasing Managers Index (PMI) from Lloyds TSB signalled solid output growth in March, driven by a strong rise in new business.

Input price inflation also eased to the weakest since December 2009 and prices charged for goods and services were unchanged since February.

Most new business growth was concentrated in the service sector. Job numbers rose in both manufacturing and services, and the overall rate of growth was stronger than the UK average.

Phil Beales, area director for Lloyds TSB Commercial in Kent and East Sussex, said: "The South East rounded off a positive first quarter of the year in March, being one of the better-performing UK areas along with the Midlands. Output growth strengthened and so too did incoming new business, signalling that momentum will continue into the second quarter.

"In a sign of returning pressure on capacity, outstanding business declined at only a marginal rate. Cost pressures have stabilised, as input price inflation eased to a 27-month low. However, firms remain unable to raise their own charges on average as competition remains stiff."