Latest data released by Markit/CIPS - 3 September 2021
- Composite PMI 54.8 vs 55.3 prelim
The preliminary report can be found here. The recovery in business activity continues to moderate, as demand conditions normalise but there was also a shortage of staff and supply chain disruptions that weighed last month.
That said, employment figures were solid (fastest rise on survey record) and business optimism did also climb to a three-month high. Markit notes that:
"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.
"Tight labour market conditions pushed up wages as service sector companies sought to attract and retain employees. The overall rate of input cost inflation remained steep, but eased from the record high seen in July. "Business optimism edged up to a three-month high during August, suggesting that service providers have become slightly more confident about longer-term prospects for demand and supply availability."
