05 September 2006 | Helen Gilbert
The UK services sector grew in August but at its slowest rate since November 2005, according to the latest CIPS/RBS Purchasing Managers' Index (PMI) report, released today.
The seasonally adjusted index, where a reading above 50 indicates growth, recorded 56.7 in August, compared with 57.9 in July. The figure has been falling since it hit 59.7 in April.
New business improved slightly in August to a three-month high of 58.2.
Meanwhile, input price pressures intensified, with the input prices index reaching 63.9. According to the report, costs rose at their sharpest rate in the survey's 10-year history, reflecting higher prices paid for energy, fuel and utilities.
The eurozone PMI for services posted a figure of 57.1 in August, compared with 57.9 in July signalling a further easing in the rate of growth from June's six-year peak.
* Coverage of previous months' PMI reports is available at www.supplymanagement.com/pmi
* More information on the UK and euro-zone PMIs is available at www.ntc-research.com