UK services sector continues 20-month growth
5 September 2012
The UK services sector saw the 20th consecutive month of growth in August, and the fastest growth level in five months.
Wed, 5 Sep 2012
The UK services sector saw the 20th consecutive month of growth in August, and the fastest growth level in five months.
This is according to Markit’s Chartered Institute of Purchasing & Supply UK Services Purchasing Managers’ Index (PMI), which collected data from a variety of companies in services industries across 13-29 August.In these indices, a rating of 50.0 indicates static growth for the sector; anything higher indicates expansion. August’s PMI was 53.7, up from 51.0 in July.
Chris Williamson, chief economist at survey compilers Markit, says: “With the service sector upturn accompanied by a marked easing in the manufacturing sector downturn, the survey data add to hopes that the economy will pull out of recession following the 0.5% contraction seen in the second quarter.”
Staffing levels in services increased for a ninth successive month, albeit at a modest pace, the slowest since February. Services firms also remained overall confident of continued business growth over the coming year.
Greater activity was put down to a number of factors, including in some instances better weather.
Anecdotal evidence in some cases saw the Olympics as a positive force; elsewhere it was seen to impair growth, especially through travel restrictions imposed in and around London.
David Noble, chief executive at CIPS, says: “The Olympics resulted in mixed fortunes for the sector with some impacted negatively by travel restrictions and business being placed ‘on hold’. Others have reported higher levels of activity courtesy of new contract wins, marketing initiatives paying off and in some cases better weather.”
The UK services sector saw the 20th consecutive month of growth in August, and the fastest growth level in five months.
This is according to Markit’s Chartered Institute of Purchasing & Supply UK Services Purchasing Managers’ Index (PMI), which collected data from a variety of companies in services industries across 13-29 August.In these indices, a rating of 50.0 indicates static growth for the sector; anything higher indicates expansion. August’s PMI was 53.7, up from 51.0 in July.
Chris Williamson, chief economist at survey compilers Markit, says: “With the service sector upturn accompanied by a marked easing in the manufacturing sector downturn, the survey data add to hopes that the economy will pull out of recession following the 0.5% contraction seen in the second quarter.”
Staffing levels in services increased for a ninth successive month, albeit at a modest pace, the slowest since February. Services firms also remained overall confident of continued business growth over the coming year.
Greater activity was put down to a number of factors, including in some instances better weather.
Anecdotal evidence in some cases saw the Olympics as a positive force; elsewhere it was seen to impair growth, especially through travel restrictions imposed in and around London.
David Noble, chief executive at CIPS, says: “The Olympics resulted in mixed fortunes for the sector with some impacted negatively by travel restrictions and business being placed ‘on hold’. Others have reported higher levels of activity courtesy of new contract wins, marketing initiatives paying off and in some cases better weather.”
