Service Sector Growth Accelerates...
The rate of growth of total business activity and new business expansion accelerated to the fastest rate since January. (Source: Markit/CIPS PMI Survey - October 2016) and BBC Business News, 3rd October. The sector continued to generate more jobs, albeit at a weaker rate than the average seen over the past three years. The latest survey also revealed a marked build up of inflationary pressures in the sector, linked to the weak pound, with the strongest input price inflation since March 2011; and charge inflation at five-and-a-half year record.
The seasonally adjusted Markit/CIPS Services PMI Business Activity Index (designed to track changes in total activity) showed the UK Services Business Activity Index remained above the no-change mark of 50.0 for the third consecutive month in October, indicating a continued recovery in growth following a contraction in July linked to the EU referendum. Moreover, the Index rose to 54.5, from 52.6, signalling the fastest expansion since January (Readings above 50.0 signal growth compared with the previous month, and below 50.0 contraction)
Faster growth of total business activity was driven by a stronger expansion of incoming new business. New contracts rose at the fastest rate in nine months. Firms linked new work to new business opportunities, rising international demand linked to the weaker pound, improving market confidence and promotional.
The UK continued to add to their workforces in October. Employment increased for the third month running, albeit with the rate of job creation remaining well below the marked rates achieved in 2014 and 2015. The survey also showed that a weak pound drove a marked intensification of cost pressures at service providers in October. Input price inflation surged to the highest since March 2011, with a survey-record month-on-month acceleration. Aside from currency weakness in general, firms linked higher costs to fuel, salaries and food prices.
See the full article in on Supply Management at Markit/CIPS PMI Survey - October 2016
Faster growth of total business activity was driven by a stronger expansion of incoming new business. New contracts rose at the fastest rate in nine months. Firms linked new work to new business opportunities, rising international demand linked to the weaker pound, improving market confidence and promotional.
The UK continued to add to their workforces in October. Employment increased for the third month running, albeit with the rate of job creation remaining well below the marked rates achieved in 2014 and 2015. The survey also showed that a weak pound drove a marked intensification of cost pressures at service providers in October. Input price inflation surged to the highest since March 2011, with a survey-record month-on-month acceleration. Aside from currency weakness in general, firms linked higher costs to fuel, salaries and food prices.
See the full article in on Supply Management at Markit/CIPS PMI Survey - October 2016