The strongest inflationary pressures of the last 23 years have limited the recovery of British companies in the service sector from the pandemic, and hit optimism for next year.
The IHS Markit services PMI fell to 58.5 points in November from 59.1 points in October, revised slightly below the initial reading of 58.6 points.
The costs incurred by service companies and the prices they charge to their customers have reached the highest level since 1998 when the data began to be recorded.
Members of the Bank of England may view the figures as support for raising interest rates on December 16, when it will meet.
New orders increased at the fastest pace in five months, mainly due to the travel industry, following the easing of restraint measures.
“It is worrying that the fastest growing service sectors are also the most exposed to the return of the most severe pandemic restrictions, especially as we approach the critical holiday season,” said Tim Moore, IHS Markit’s chief financial officer.
Optimism fell to a one-year low even before the news of the Omicron mutation became known.
The composite PMI slowed slightly to 57.6 points in November from 57.8 points in October.
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Source From: Capital
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