Tue, 6 Jan 2015Insufficient staff numbers have contributed to the UK’s services sector seeing backlogs of work increase for the 21st month in a row, according to the latest Markit/Chartered Institute of Procurement and Supply purchasing managers’ index.

Panellists pointed to insufficient headcount as a factor underpinning backlog growth, despite December’s survey data also indicating a rise in employment for the 24th month in a row, albeit at a four-month low.

Additional workers have been recruited in line with positive forecasts for company performance in 2015, and December’s survey shows more than 46% of panellists are expecting an improvement from current activity levels over the next year.

However, after accounting for seasonal factors, the headline Business Activity Index reading for the sector was 55.8 in December, down from 58.6 – the lowest recorded for 19 months. Any reading of 50 and above signals expansion of a sector.

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