THE local economy ended 2016 by registering the sharpest increase in business activity for almost two years

Data for December from Lloyds Bank shows that new business orders rose sharply and, as a result, firms took on new staff in order to fulfil demand.

In fact, jobs were created at the highest rate for an entire year.

However, cost pressures continued to take their toll on regional businesses due to the weaker pound, driving many firms to pass on their higher cost burden to customers in the form of raised prices.

The Lloyds Bank PMI, or purchasing managers’ index, is the leading economic health-check of UK regions.

It is based on responses from manufacturers and services businesses about the volume of goods and services produced during December compared with a month earlier.

Ian Patterson, regional director for the South East, said: “The latest data show a positive end to the year for firms in the South East with many experiencing an increase in new orders.

“Although growth in our region has generally been slower than the UK average since the EU referendum, the area remains a solid performer.

“The rate of job creation in December was at a 12- month high and outstripped the UK-wide average.”

Meanwhile, despite December being a quieter month for recruitment, average salaries in Brighton increased by 4.7 per cent last month.

UK job board CV-Library. said this hike places Brighton as one of the top cities for salary growth in December, outpacing many other major cities across the UK.

Brighton came fourth, behind Cardiff, Manchester and Birmingham.

CV-Library founder and managing director Lee Biggins said: “It’s positive to see Brighton witnessing significant increases in salaries last month, outperforming many other major UK cities.

“The fact that pay has jumped so significantly in the local area is a nice indication that businesses across the city are continuing to work hard to attract the very best talent.”

Job vacancies in Brighton were down by five per cent when compared to December 2015, with applications remaining stagnant last month, increasing by just 0.6 per cent.