UK services growth hits four-month high but less than first estimated
UK services activity grew at its fastest pace in four months in August, although inflationary pressures picked up, purchasing managers' index survey data from S&P Global showed on Thursday.
The seasonally adjusted PMI business activity index rose to 52.5 points in August from 52.1 in July but was below the flash estimate of 52.8 published in late August.
Even so, the reading remained above the 50-point mark separating growth from contraction and was the highest since April.
New business increased for a second consecutive month amid signs of improving business and consumer spending and investment sentiment. However, export sales fell for a sixth successive month amid weak European demand and geopolitical uncertainty.
Employment declined for a 23rd consecutive month, the longest continuous period of job losses since the survey began in 1996. However, the rate of decline was the slowest since October last year.
Input cost inflation accelerated from July's five-month low, driven by higher fuel and transportation costs, alongside rising wages, food prices and technology costs. Selling price inflation also accelerated.
"August data highlighted improving operating conditions across the UK service economy," said Tim Moore, economics director at S&P Global Market Intelligence.
Meanwhile, the S&P Global UK composite PMI rose to 52.5 points in August from 52.2 in July, matching the earlier flash estimate and reaching its highest level since April.
On Monday, S&P Global data had shown that the manufacturing PMI fell to a five-month low of 51.7 points in August from 51.9 in July, but came in above the flash estimate of 51.5.
The composite PMI is compiled from responses to questionnaires sent by S&P Global to survey panels of around 650 manufacturers and 650 service providers in the UK.
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