CIPS UK Services PMI3 Mar 2022 09:35
Growth of activity rebounds to eight-month high
Key findings
Sharper increases in activity and new orders as Omicron wave fades
Output price inflation hits fresh record Fastest rise in employment in four months
Data were collected 10-24 February 2022.
Growth in the UK service sector accelerated sharply in February as the Omicron wave of the COVID-19 pandemic subsided. Rates of expansion in both business activity and new orders accelerated sharply, supporting stronger job creation.
Inflationary pressures also intensified, however. A range of inputs were up in cost, and the passing on of higher prices to customers led to the sharpest pace of charge inflation on record.
The headline seasonally adjusted IHS Markit/CIPS UK Services PMI® Business Activity Index rose sharply to 60.5 in February from 54.1 in January, signalling a steep rise in output that was the fastest since June last year.
Respondents indicated that market demand and client confidence improved alongside the reduction in pandemic- related disruption, thereby supporting growth of activity. Similarly, new business increased at a much faster pace amid an easing of pandemic restrictions, and one that was the most marked in eight months.
Duncan Brock, Group Director at the Chartered Institute of Procurement & Supply, said:
"A bullish rise in growth and momentum in the services sector in February as activity increased at the fastest rate for eight months. There was also a most encouraging uplift in job creation figures even if the search for quality candidates remained hampered, it reflected the positive feelings amongst businesses about the year ahead and potential market expansion.
"With these improved economic conditions, the rate of new business orders was one of the quickest in the survey’s history and a surprise leap in both domestic and overseas orders set the seal for the trend to continue especially in hospitality and travel.
https://www.markiteconomics.com/Public/Home/PressRelease/4835e4e1724a49848756bfeaa4b4d468
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