UK service sector growth sustained at considerable pace

CIPS 4 December 2013

Activity and new business both continue to rise at historically sharp rates.

The Markit/CIPS Purchasing Managers’ Index® (PMI®) for the services sector showed that extra staff were added to payrolls in November.

Posting at 60.0 in November and down from October's 62.5, faster price rises were also recorded.

David Noble, Chief Executive Officer at the Chartered Institute of Purchasing & Supply:
“Performance and new business for UK services continued to improve at historically high rates in November, upholding the strong run of growth seen through-out the second half of 2013. With positive prospects of market expansion, new product launches and a buoyant economic environment, alongside improvement in the housing market, businesses are confident that the current upturn will be prolonged into the New Year.
“Combined with strengthened demand and a surge in new orders, backlogs of work rose steadily for an eighth successive month. As a result of this and in anticipation of growing investment and expansion in 2014, firms sought to boost their staffing levels, though weren’t able to do so as quickly as they might have liked.
“Input costs continued to climb in November which, with increasing wages, placed pressure on operating costs. In response, UK services companies have continued to raise their own prices, with inflation reaching the sharpest rate since May 2011. Notably, price and supply chain pressures will be something to watch in the coming months but for now, we can be merry that services will continue to deliver growth heading into the festive period.”


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