UK Services Growth accelerates, according to CIPS
UK Services has seen the strongest rate of growth since August 2014, according to the latest Markit and CIPS survey. In their latest Market report UK Servies has seen the strongest rate of growth since August 2014 and the overall growth in first quarter stronger than in final three months of 2014."The rate of expansion accelerated to a seven-month high, driven by a stronger rise in new business. Growth over the first quarter as a whole was faster than that seen in the final three months of last year. Moreover, the volume of outstanding business rose at a faster rate, despite a further marked increase in employment. Price pressures remained subdued, with input price inflation unchanged from February and prices charged by service sector companies barely rising in March.
Growth in activity was attributed by survey respondents to a wider economic recovery, improving confidence, winning new customers and new product development. Higher workloads also reflected a further marked increase in the volume of new business, which rose for the twenty-seventh consecutive month. Moreover, the rate of growth in new contracts accelerated to the highest since last September.
The longer term outlook held by service providers also improved in March. Business expectations were at their strongest since May 2014, with positive sentiment linked to marketing campaigns, new products, foreign investment, export demand and an improving construction sector. That said, there was a degree of uncertainty associated with the upcoming general election, which partly weighed on expectations.
The underlying strength of business conditions in the services economy was further highlighted by a marked rise in employment. The rate of job creation eased to a three-month low, but was strong overall and broad-based by sub-sector. Despite ongoing workforce growth, the volume of outstanding business continued to rise, and at the fastest rate since last September. To reed more...."