The UK services sector activity expanded less than expected in August, according to IHS Markit.
The seasonally-adjusted IHS Markit/CIPS UK Services Purchasing Managers’ Index (PMI) was revised lower to 55.0 in August versus 55.5 expected and a 55.5 – last month’s flash reading.
Tim Moore, Economics Director at IHS Markit, which compiles the survey, said: “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.”
"Service providers signalled the sharpest rise in employment since data collection began 25 years ago. Additional staff recruitment typically reflected efforts to return workforce numbers to pre-pandemic levels after widespread job cuts last year. Many survey respondents commented on long wait times to fill vacancies and an unexpectedly high staff turnover as the UK economy reopened.”
Duncan Brock, group director at the Chartered Institute of Procurement and Supply, added: “The third consecutive monthly fall in growth in the services sector showed that a lack of staff and raw materials in August continued to rein back on recovery, after the spring surge.”