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UK Services Sector Posts Slight Rebound in September

October 5, 2021 by Forex Winner Leave a Comment

UK Services Sector Posts Slight Rebound in September

Source: IHS Markit

The United Kingdom’s services sector activity growth posted a slight rebound in September, even as supply issues continued to dampen the industry during the month. EWU is up 0.55% premarket.

  • The IHS Markit/CIPS UK Services PMI Business Activity Index stood at 55.4 in September, up from the six-month low of 55.0 in August.
  • A number of firms reported higher output levels for the month, driven mainly by confidence among clients and favorable business conditions as restrictions eased.
  • Several firms said activity declined due to supply chain disruptions and staff shortages, particularly in the hospitality sector.
  • New order growth slipped for the fourth straight month, with new business volumes posting the slowest growth since March.
  • Supply constraints caused another round of steep price increases, with half of the firms recording higher cost burdens. 
  • The latest reading marked the second-fastest rate of inflation since data collection started 25 years ago, following only that recorded in July.
  • Business optimism eased slightly, but a majority of the firms expect a rise in output in the coming year, while 8% predict a decline.

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