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Surging inflation pressure curbs growth in UK services firms: PMI -Breaking

© Reuters. FILEPHOTO: At the height of the coronavirus pandemic (COVID-19), people walk along Millennium Bridge. The City of London is seen in the background. REUTERS/Hannah McKay/File Photo

LONDON (Reuters – Inflation pressures that were the strongest in recent years have impeded the recovery by British services firms from the COVID-19 pandemic of November. This has also lowered optimism for next year, according to a Friday survey.

CIPS UK Services/IHS Markit Purchasing Managers’ Indice (PMI), fell to 58.5 in November, from 59.1 last October. It was revised slightly down from an initial flash reading of 88.5.

According to the survey, both prices charged by service providers and costs paid by them were at their highest since 1998. Some Bank of England officials might consider this support for a Dec. 16 interest rate increase.

The PMI revealed that new orders rose fastest in five months because of the relaxation of restrictions on travel.

Tim Moore, IHS Markit’s economics director, stated that “Worryingly” the fast-growing areas of the service industry are also most vulnerable to tighter pandemic controls, particularly as we near the festive season.

Even before the Omicron version of COVID-19 was announced to the majority of companies, optimism fell to a year low.

Composite PMI, which is a mixture of Wednesday’s manufacturing PMI and the services survey, fell to 56.6 in November from 58.1 in October.

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Mike Robinson
Mike covers the financial, utilities and biotechnology sectors for Street Register. He has been writing about investment and personal finance topics for almost 12 years. Mike has an MBA in Finance from Wake Forest University.