IHS Markit’s service PMI rose from 61.0 in April to 62.9 in May
The UK economy is experiencing significant growth as it increases demand for lockdown restrictions, where the services sector is being eased nationwide.
The latest survey of purchasing managers at UK services companies shows that activity rose at the fastest rate in May in 2024.
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Many companies reported a recovery in spending for both consumers and business, but new orders rose at rates not seen since October 2013.
As a result, companies took on more staff and led the strongest employment growth rate in over six years.
In May, lockdown restrictions were eased until pubs and restaurants were able to serve customers indoors. This came after the reopening of non-essential shops in April.
The rapid rise in demand is also driving costs up. Since the investigation began in 1996, companies have raised their prices to the maximum.
IHS Markit’s service PMI rose from 61.0 in April to 62.9 in May. All over 50 are indicators of growth, but the recorded levels indicate rapid levels of growth that have contracted over the past few months.
Tim Moore, economic director at IHS Markit, says the economy has achieved successful vaccine rollouts to thank the strong growth these days.
“UK service providers reported the strongest increase in activity in nearly a quarter century during May as the rollback of pandemic restrictions unlocks business and consumer spending. The latest findings are as follows: We have set up a scene with an eye-opening rate of UK GDP growth over the two quarters.
“The pressure on business capabilities due to surge in demand and difficult staff employment emerged as a major challenge for services sector companies in May. Job creation has been the strongest for over six years, but since the summer of 2014 , the work backlog has been accumulated to the fullest extent.”
The hospitality industry is currently facing a recruitment crisis as it struggles to fill thousands of vacant seats as the economy is reopening.
