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Services sector stalls

The UK services sector stalled in September, with discretionary spending hit by inflation.

S&P Global/CIPS UK services purchasing managers index came in at 50.0 during the month, down from 50.9 in August, marking no expansion or contraction.

Tim Moore, economics director at S&P Global Market Intelligence, said: “September data highlighted an absence of growth in the UK services sector for the first time in 19 months as the energy crisis continued to hit business and consumer spending.

“Service providers often noted spending cutbacks among UK households, especially in relation to discretionary services such as hospitality and leisure.”

Dr John Glen, chief economist at the Chartered Institute of Procurement and Supply, added: “Domestic consumers had cost-of-living pressures and not hospitality uppermost in their minds.

“After enjoying rising levels of export orders for eight months in a row, the ongoing effects of Brexit and trade difficulties also reduced overseas enquiries for service companies.

“Inflation rates remained high, forcing businesses to pay more for food and energy and ongoing staff shortages put upward pressure on salaries.”


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