UK Services Firms Hike Prices at Fastest Rate Since 1996

Source: IHS Markit

British service companies have increased their prices at the fastest rate in 25 years as rising energy bills, and transport costs increased the cost of living. FTSE 100 down -0.13%, GBP USD down -0.13%

• The IHS Markit/CIPS Purchasing Manager’s Index (PMI) grew to 54.1 in January from December’s 10-month low of 53.6. Any score above 50.0 signals growth.
• Tim Moore, IHS Markit economics director, stated that demand has begun to recover from the impact of Omicron restrictions, and most businesses anticipate only a short-term slowdown from canceled bookings and staff absences.
• Hospitality firms suffered a major plunge in sales over Christmas and New Year’s Eve.
• Improved new order intakes and positive sentiment towards the end of the year outlook contributed to another rapid increase in employment numbers in January.
• Almost one-in-three survey respondents stated that higher average prices were charged in January than in December, largely attributable to increasing salary payments, energy bills, and logistics costs.