England's northwest was the UK's most resilient regional economy in July, according to the latest PMI Business Survey Data.

The index was produced by Markit Economics for the Royal Bank of Scotland (RBS), which has a major presence in both Manchester and Liverpool.

Private sector output grew last month from 47.6 points in June to 51.5, according to the seasonally-adjusted business survey.

RBS economist Philip McKinnon welcomed the figures but warned against complacency.

"New orders were static," he told North West Business Insider. "Inflationary pressures also persisted, adding to the challenging business environment."

A recent survey by the Confederation of British Industry showed several regions reported falls in orders.

The only exceptions were the northwest and Northern Ireland, which both reported a modest increase.

Peter Rogers, from the Manufacturing Institute, said that while there are concerns about rising energy and materials costs, there is still an overriding "sense of optimism".