The UK service sector continued to expand in September but severe supply constraints lifted inflationary pressures, final survey data from IHS Markit showed on Tuesday. <\/p>\n
The Chartered Institute of Procurement & Supply final services Purchasing Managers’ Index registered 55.4 in September, up slightly from August’s six-month low of 55.0 and the flash 54.6.<\/p>\n
New order growth weakened for the fourth month in a row. Staff shortages, supply issues and the end of the stamp duty holiday were among the most commonly cited reasons for softer demand.<\/p>\n
The survey showed that a lack of candidates to fill vacancies and persistently high numbers of departing staff acted as a considerable brake on employment growth. <\/p>\n
Supply chain difficulties resulted in another round of steep input price inflation at service sector companies in September. Data showed that output charge inflation was the steepest since the survey began in July 1996.<\/p>\n