With new business also rising at a faster pace The Markit/CIPS Purchasing Managers’ Index® (PMI®) for the service sector reported modest increase in employment and an improvement on the headline figure of 52.9.
David Noble, CIPS CEO commented: " New products, better weather and increased foreign demand, alongside improved market conditions, have seen services sector activity grow at its fastest pace for eight months. New business has followed suit, building on the solid trend shown in the first quarter. This steady performance ought to be reassuring, but as it remains in its infancy there's still some way to go until everyone can breathe a sigh of relief.
"New business and an upturn in activity has put pressure on capacity, leading to a modet increase in employment. Firms will be hoping this trend continues as they keep an eye on costs.
"Business confidence is slightly subdued in spite of the positive headline numbers which is perhaps a reflection of the persistent pressures businesses are facing as he economic climate continues to challenge. As a result, firms are reluctant to increase their prices, even though their costs have risen. Looking ahead, if steady growth can be maintained, the outlook for the sector may well brighten still further."
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