Growth amongst West Midlands firms remains hesitant as many continued to battle strong competition and higher input costs, a report has claimed.

While output increased last month, the rate of growth was only moderate, according to the PMI Business Survey Data produced for the Royal Bank of Scotland. West Midlands firms continued to face sharper increases in input prices on average than those across the UK as a whole in February.

Moreover, the gap between input price inflation in the region and the national average was the widest since last July. Though the rate of input cost inflation eased further from October's high, it remained severe, with firms widely reporting rises in metals, plastics, energy and transport prices.

RBS Economist Mark Smyth said: "Private-sector firms in the West Midlands saw a further expansion in output and new orders in February, but the rate of growth remains relatively moderate and below the UK average."

February's report indicated a 23rd successive month of expansion in the region's private sector economy, with the service sector again registering a sharper rate of growth than manufacturing.

However, having improved in January to 53.1 , the seasonally-adjusted Business Activity Index slipped to 52.7 in February, to signal moderate growth of activity that was weaker than in the previous month and well below the UK average.

At 52.0 in February, the Incoming New Business Index was unchanged from January's 51.9. The data signalled only a moderate growth in new business to the West Midlands private-sector economy.