United Kingdom Services PMI2021 Data | 2022 Forecast | 2007-2020 Historical

The IHS Markit/CIPS UK Services PMI was revised higher to 55.4 in September of 2021 from a preliminary of 54.6, pointing to another strong recovery in UK service sector activity, but severe supply constraints contributed to escalating inflationary pressures and the slowest rise in new orders since the end of the winter lockdown. Rapid rises in fuel, energy and staff costs were passed on to customers in September. The rate of prices charged inflation accelerated sharply since August and was the fastest since the survey began in 1996. Finally, latest data indicated that business optimism eased slightly since August. However, the majority of panel members (57%) expect a rise in output during the year ahead, while only 8% forecast a fall.

The IHS Markit/CIPS UK Flash Services PMI fell slightly to 54.6 in September of 2021 from 55 in August, slightly below forecasts of 55. The reading pointed to the slowest growth in the services sector in 7 months. Where business activity increased, companies reported improving customer confidence and an ongoing recovery from the COVID-19 pandemic. Total new orders increased at a solid but reduced pace, while new business from abroad was up only marginally again. The rate of job creation remained rapid, and was only slightly weaker than the series record in August. The rate of input price inflation accelerated amid reports of higher wage costs, product shortages and increased transportation costs. In turn, companies raised their own charges at the fastest pace since the series began in July 1996. Companies remained confident that activity will increase over the coming year, but sentiment was the lowest in the year-to-date.

The IHS Markit/CIPS UK Services PMI was revised lower to 55.0 in August 2021, from a preliminary reading of 55.5 and below the previous month's 59.6. The latest reading pointed to the worst month for business activity growth since the current phase of recovery began in March, as new business growth lost momentum due to the end of the full stamp duty holiday and a subsequent cooling in consumer demand arising from residential property transactions. The pace of job creation picked up to its strongest since the survey began in July 1996, despite reports of staff shortages and amid a solid increase in backlogs of work. Meanwhile, the overall rate of cost inflation eased since the previous month, but was the second-fastest seen over the past 25 years. Finally, business confidence rebounded to its strongest since May.

The IHS Markit/CIPS UK Services PMI dropped to 55.5 in August 2021, from 59.6 in the previous month and well below market expectations of 59.0, a preliminary estimate showed. The latest reading signaled the weakest rate of expansion in the service sector since February, amid reports that staff shortages and less favourable demand conditions had constrained the recovery. Output and new orders rose at softer rates, while the pace of job creation was the strongest since records began in July 1996. Also, The latest survey indicated a rebound in business sentiment to its highest since May, which ended a four-month sequence of falling confidence.