Growth across the UK’s service sector picked up last month as an increase in new business bolstered firms and forced some firms to increase wages to attract employees.
Source: IHS Markit.
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The Markit’s PMI Survey recorded an increase in the Services PMI to 59.1 in October from 55.4 in September, signaling the fastest recovery since July.
The reopening of the economy and loosening of international travel restrictions helped to boost demand, with new export sales growing at the fastest rate for over three years.
Tim Moore, economics director at IHS Markit stated that the UK service emerged from its restlessness, but staff shortages remain a major concern as workers quit in search of higher pay.
Nearly 30% of firms reported an increase in employment figures during October, while only 13% showed a reduction.
There was high demand in the hospitality, leisure and transportation sectors after the relaxation of pandemic restrictions this year.