Service sector growth picks up in February
Service sector growth picks up in February according to latest IHS Markit / CIPS UK Services Survey... recorded (from CIPS News)The latest survey shows, business activity rises at the fastest pace for four months and shows the strongest upturn in new work since May 2017. Input cost inflation is at the lowest for a year-and-a-half.
"UK service providers experienced a modest rebound in business activity growth during February, supported by the fastest rise in new work since May 2017. The latest survey also pointed to stronger job creation across the service economy, with payroll numbers rising to the greatest extent for five months as firms sought to boost operating capacity in response to improved order books.
At the same time, cost pressures moderated to their lowest for a year-and-a-half, which contributed to a further slowdown in prices charged inflation. A number of survey respondents commented on efforts to stimulate demand through competitive pricing strategies and new promotional initiatives.
The seasonally adjusted IHS Markit/CIPS UK Services PMI® Business Activity Index registered 54.5 in February, up from 53.0 in January, to signal the strongest rate of service sector output growth for four months. Higher levels of business activity were attributed to the resilient economic backdrop and an associated upturn in new work.
Growth of incoming new business picked up for the second month running and reached its strongest since May 2017. Service providers commented on particularly marked business-to-business sales growth in February, helped by the improving global economic backdrop. However, there were also reports that stretched household budgets remained a factor holding back domestic consumer demand."
See the full article in CIPS News