The Markit/CIPS Purchasing Managers’ Index® (PMI®) for the services sector showed new business growth at its strongest for 16 years.
The index posted at 60.5 in August, up from July's 60.2 amidst signs of a stronger recovery in the UK economy for some years.
David Noble, CIPS CEO commented, "Optimism abounds as the UK services sector, combined with manufacturing and construction, completes a glowing picture for the UK economy. Service providers reported the fastest growth since December 2006 and the sharpest rise of new business for over 16 years. As a result, confidence remains high, providing a platform for investment and expansion for the rest of the year.
"In contrast, employment was a little stilted, but burgeoning order books and the sharpest rise in backlogs since February 2000 means this should be of little immediate concern for an indicator which tends to lag, and we expect staff numbers to improve by the end of the year.
"Input costs have continued to climb in August, and firms sought to offset these with their own price increases reflecting positive business expectations and market optimism. Based on this set of data, we are anticipating the current sequence of UK service sector expansion to be extended over the coming months."
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