Region's economy expanding

The region's business activity index, which measures the manufacturing and service sectors, was at the same level as September, meaning there was no change in the pace of expansion.

There was solid growth in output, albeit at the joint-weakest rate since January, according to the Yorkshire and Humber PMI, produced by Markit.

The level of new orders grew at a marked rate in October, recovering from September's seven month low, according to the research.

Firms said new product launches and clients' resumption of postponed orders boosted the region's economy.

The number of people employed in the private sector grew at a "modest pace" and remained stronger than the UK average.

The report also showed the level of outstanding work fell in October as increased production capacity helped to absorb a growth in new orders.

Patrick Bowes, the chief economist at outgoing regional development agency Yorkshire Forward, said: "The region's businesses enter Q4 in reasonably good shape with a bounce back in new order growth contributing to a marginal improvement in employer hiring intentions.

"Rising costs and greater margin pressures on Yorkshire businesses than nationally clearly present competitive challenges especially in export markets going forward."