GROWTH in Yorkshire private sector firms slowed in December to its lowest level for nearly two years, reflecting a decline in new orders.

The latest Lloyds Bank Yorkshire & Humber Business Activity Index showed that while business activity rose for the 26th consecutive month, the rate of expansion slowed to its weakest in 21 months.

Meanwhile, input prices declined for the first time since August 2012, while prices charged rose slightly.

A fall in the index from 57.4 to 55.3 signalled a fourth consecutive monthly slowdown in output growth and revealed the weakest rate of expansion since March 2013 – but was broadly in line with the UK average. Softer growth affected both the region’s manufacturing and service sector output.

It also reflected a deceleration in new order growth, with the rate of increase the weakest recorded since February 2013 and below the UK average.