by business editor Trevor Sturgess

The private sector in Kent and across the south east expanded slightly in July, according to an influential survey.

The South East Purchasing Managers Index (PMI), reported the first rise in overall activity since April 2008, with a growth in new business leading the way.

The index is a monthly survey of purchasing managers which tracks a range of economic indicators including new orders, output, employment and prices.

"Activity growth was solid and in marked contrast to the sharp declines posted towards the end of 2008," said Alex Hamilton, an economist with Markit which compiles the report.

"Anecdotal evidence suggested that increased business activity largely reflected firmer demand, with latest data pointing to the first rise in new order intakes since April 2008."

Costs also fell again in July, suggesting the falling price of raw materials continues to have a largely positive effect.

However, the report is not all good news. South east firms continued to cut jobs in June, with the rate of decline faster than in May. "Employment fell at a faster pace in manufacturing than services," said Mr Hamilton.

However, there are signs the pace of job-shedding slackened in July on the back of the new growth.

But, on balance, Mr Hamilton believes the report is good news. "It provides further evidence to suggest the most intense phase of recession has now passed."