“Severe supply constraints” and “escalating inflationary pressures” led to the slowest expansion in new orders since the end of winter lockdowns for the UK services sector in September.
- IHS Markit’s monthly data indicated that rapid increases in fuel, energy, and staff costs were passed onto the customers in September.
- The headline seasonally adjusted IHS Markit/CIPS UK Services PMI Business Activity Index posted 55.4 in September, slightly higher from August’s six-month low of 55.0
- Tim Moore, economics director at IHS Markit stated that tight constraints on business capacity and increased supply chain uncertainty implied that service providers have become more willing to pass on higher costs to customers.
- The proportion of service providers reporting a rise in their average prices surged from 17% in August to 24% in September.
Services sector businesses widely determined that constrained supply, higher transport costs, and rising salary payments led to an increase in inflationary pressures as customers’ demand continued to recover.
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Source: IHS Markit