UK PMI Services was finalized at 55.0 in August, down from July’s 59.6, and way below May’s record high of 62.9. PMI Composite was finalized at 54.8, down from July’s 59.2. Markit said recovery in business activity eased further from May’s peak. Employment numbers rose at fastest rate since survey began in July 1996. Business optimism also climbed to three-month high.
Tim Moore, Economics Director at IHS Markit, which compiles the survey: “The service sector lost momentum for the third consecutive month as the impact of looser pandemic restrictions faded in August. Many businesses suffered constraints on growth due to staff shortages, self-isolation rules and stretched supply chain capacity…
“Tight labour market conditions pushed up wages as service sector companies sought to attract and retain employees. The overall rate of input cost inflation remained steep, but eased from the record high seen in July…
“Business optimism edged up to a three-month high during August, suggesting that service providers have become slightly more confident about longer-term prospects for demand and supply availability.”
