PMI: Recovery of UK services sector regaining momentum
The recovery of the UK services sector regained momentum last month, according to new figures.
The closely watched IHS Markit/CIPS UK Services PMI survey scored 54.1 in January, bouncing back from a 10-month low of 53.6 in December.
Any score above 50 shows growth in the sector.
The latest data showed that activity in the sector improved during the month as Plan B restrictions and concerns over the spread of the Omicron variant eased.
However, firms also reported steeper cost pressures at the start of 2022.
Tim Moore, economics director at IHS Markit, said: “The latest PMI data provide good news about prospects for the UK economy in 2022 as demand has started to recover from the impact of Omicron restrictions and most businesses expect only a temporary slowdown from cancelled bookings and staff absences at the turn of the year.
“Growth expectations for the next 12 months picked up in January and are now the highest since last spring, with staff recruitment difficulties often the only major source of anxiety.
“However, record price increases in the service economy are set to add to the cost of living crisis for UK households.
“Input cost inflation accelerated again in January and service providers responded by increasing their prices charged at the fastest rate since the index began in July 1996.”