The UK Markit/CIPS Purchasing Managers’ Index® (PMI®) for the services sector followed the manufacturing and construction PMI by registering a small drop, but still in growth above the 50-mark.
Activity continued to rise along with new orders, cost inflation continued upward and employment increased as future prospects are perceived as positive.
David Noble, Chief Executive Officer at the Chartered Institute of Purchasing & Supply:
“On the face of it, little seems to have changed in this month’s UK Services PMI survey, with growth solid rather than spectacular. Digging deeper into the figures however, there are some positive signs for the year ahead.
Expectations are at their strongest for over two years as a result of new business. The development of backlogs offers further encouragement and has led to solid growth in employment, reinforcing this still tentative recovery.
“However, there is continued evidence of increasing pressure on profit margins. Fuel prices are driving up costs, but continued competition means prices charged remain relatively flat or reduced, to attract business. Such pressures are likely to continue as businesses look to maintain the recovery.”