UK PMI Services was finalized at 55.4 in September, up slightly from August’s 55.0. PMI Composite was finalized at 54.9, up fractionally form August’s 54.8. Markit said charges rose at record pace amid supply constraints and spike in costs. Staff shortages held back output and new orders. Backlogs accumulated for the seventh month running.
Tim Moore, Economics Director at IHS Markit: “The supply chain crisis put a considerable brake on recovery in the UK service sector during September. Survey respondents widely noted that shortages of staff, raw materials and transport had resulted in lost business opportunities… Another spike in operating expenses was reported… even though this data is yet to fully reflect the inflationary impact of the UK fuel crisis and surging energy prices…
“Tight constraints on business capacity and rampant supply chain uncertainty meant that service providers have become more willing to pass on higher costs to customers. The latest rise in average prices charged by UK service sector firms was the fastest in over 25 years of data collection, with many businesses reporting more frequent reviews of pricing due to escalating cost increases by suppliers.”
