Categories: Markets

The services PMI falls to 53.6 in December although it improves expectations

The services PMI falls to 53.6 in December although it improves expectations

The Markit UK Services PMI Index fell to 53.6 in December from 58.5 in November, its lowest level in ten months, specifically since February 2021. The result, however, improves market expectations, which were expected a drop to 53.2.

UK service providers noted a sizeable reversal during December as the Omicron variant caused a sharp drop in spending on face-to-face consumer services, growing business uncertainty and disruptions due to staff absences. Business activity growth was the weakest since the recovery from lockdowns began last spring.

On a more positive note, the job creation remained relatively strong, the pressures on costs eased from the peak in November and expectations for production growth improved slightly. About 55% of the survey panel anticipates an increase in activity over the course of 2022, while only 10% predict a decrease.

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