CIPS News


UK services sector registers fastest rise in activity for over two years

CIPS 3 July 2013

Activity growth supported by strongest gain in new business since June 2007.

With employment rising at the fastest pace for just under six years, the Markit/CIPS Purchasing Managers’ Index® (PMI®) for the services sector showed another rise this month.

The PMI registered at 56.9, up from last month's 54.9.

David Noble, CIPS CEo commented: "The UK services sector finished off Q2 with a stellar performance in June, giving the clearest signal yet that the worst days of the financial crisis are behind us. The UK's largest industry recorded the fastest growth in new business for six years and the sharpest increase in employment over a similar period. These figures, taken in conjunction with manufacturing and construction, mark a good first week for the new Bank of England Governor and will ease pressure on the MPC to embark on another round of QE.

"As ever, a handful of issues remain. The macro-economic environment remains uncertain and competition remains fierce. At the same time, whilst output prices rose, firms are still struggling to pass on the full extent of input price rises to clients.

"Overall however, worse problems have beset the sector in recent years so confidence is rightly high. Barring any major changes to the global economy, we can be optimistic about sustaining this growth as we go into the second half of the year."

For press enquiries, call the Press office on 01780 756777or email: press@cips.org. The PMI data is available to purchase.

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