UK services sector growing at fastest pace in 16 years

07 - 11 - 2013

Activity in the British services sector has enjoyed its fastest growth since May 1997, an influential survey suggests.

The Markit/CIPS UK services Purchasing Managers’ Index (PMI) also found that companies were hiring new recruits at the strongest rate in 16 years.

The index jumped from 60.3 in September to 62.5 in October – a reading which may prompt the Bank of England to revise up its quarterly growth forecasts next week.

The index was not expected to rise above 59.8.

Any figure above 50 is indicative of growth.

The services sector was hailed as the ‘major driving force’ behind the UK’s economic recovery by survey compilers, Markit.

The sector accounts for approximately 75 per cent of the economy.
‘Up a gear again’

Chief economist at Markit, Chris Williamson said the reports indicated that growth would speed up further in the final quarter of the year.

‘The UK economic recovery moved up a gear again in October, with the PMIs indicating record growth of output and employment,’ he said.

‘Historical comparisons of the PMI against gross domestic product suggest the latest survey data are consistent with a 1.3% quarterly rate of GDP growth, up sharply from previous quarters.’

However, the UK’s total economic output is still less than its 2008 peak.







Foremans LLP Umberlla
Foremans LLP