UK service providers reported faster business growth in June despite cost-of-living concerns and a weak economic outlook, final data from S&P Global showed on Tuesday.
The S&P Global/Chartered Institute of Procurement & Supply Final Services Purchasing Managers’ Index stock recorded 54.3 in June. The flash score was 53.4, unchanged from May.
The score remained above the 50.0 mark unchanged for the sixteenth consecutive month.
Orders rose the weakest since February 2021 as rising inflation and worries about the economic outlook weighed on demand. Meanwhile, export sales rose at the fastest pace since February.
Data indicates a robust rate of job creation across the service economy. Survey respondents cited serious recruitment and retention challenges.
The survey showed that input cost inflation rose at the second fastest rate since the start of the survey in July 1996. Average prices charged by service providers continued to rise at a rapid pace in June, with the inflation rate only slightly below May’s record high. .
Expectations for output growth in the broader services economy continued to moderate in June. The degree of positive sentiment regarding the outlook for the year ahead was the lowest since May 2020.
The composite production index came in at 53.7 in June, up slightly from 53.1 in May, but remains the second weakest reading so far this year. The flash score was 53.1.
A slowdown in manufacturing output growth to its lowest level since May 2020 was offset by a moderate acceleration in service sector activity.
The relative calm demonstrated by the slight increase in the overall figure belies the underlying picture of businesses weighed down by rising costs, the struggle to build operating capacity and a shortage of raw materials caused by war and disruption. supply chain continuity, Duncan Brock, group director at the Chartered Institute of Procurement & Supply, said.
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