Eurozone PMI shows growth, but at slowest rate for a year
Service sector growth slumps
Manufacturing PMI sees record growth
"Significant recovery" for most of US manufacturing sector
Blackpool Pleasure Beach buyers get innovative
3 February 2011 | Angeline Albert
Growth in the UK services
sector showed only a modest rise in
January and job cuts by employers continued.
three-month average of data shown in the Markit/CIPS UK Services Purchasing Managers' Index, suggests
that the rate of growth of activity and new business has slowed substantially
since last spring, with only a very marginal rise evident in January.
The Markit/CIPS Business Activity Index shows the
sector recovered sharply in January from December’s snow-related
disruption, with the index reporting 54.5 last month, up from 49.7 the previous
strongest rebounds in activity were in hotels, catering, and restaurants,
personal services, and transport, storage and communications.
The rate of job cuts by service providers
showed only a marginal easing from December.
Prices charged for services rose at the fastest rate
since September 2008 as firms sought to pass rising costs and higher VAT on to
customers, particularly in the hotels, catering, and restaurants sector,
reflecting high food prices. Input cost
inflation showed the largest jump since the survey began in mid-1996.
Transport, Storage & Communications showed the largest increase, reflecting
the rise in fuel prices.
Williamson, chief economist at survey compilers Markit said:“The
underlying trend remains one of only very modest growth, and well down on the
strong rate seen in the first half of last year.
“Demand for consumer services remains particularly under pressure from
widespread job insecurity and squeezed incomes, as real wages fall and prices
continue to rise.
“Looking ahead, service providers appear nervous about the future, cutting
payroll numbers again in January, despite reporting an improvement in business
confidence about the year ahead.”
CIPS CEO David Noble, said:“It is encouraging to see that
confidence for the year has improved with over half of the survey panel
expecting a moderate increase in activity. Unfortunately this isn’t filtering
through to staffing levels, which continue to fall, and we expect that many
companies are taking a cautious approach given the recent VAT rise and price