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UK’s Service Industry Surges Significantly

Last month, the UK’s services industry reported a surprising boost in output with startups performing remarkably well since May 2017.

In fact, UK’s market has surged beyond predictions. For instance, the IHS Markit/CIPS UK Services PMI (purchasing managers’ index) recorded 54.5 reading in Feb., way above what analysts’ expected, and a better result from January’s 53.0. In the PMI index, any reading above 50 shows growth.

Growth, in this sector that accounts for over three-quarters of UK’s GDP, skyrocketed and firms took on new workers in an effort to meet the requirements of the expanding businesses. Another significant finding was the marked surge in B2B sales which is a sign of a step up in the global economy.

According to Chris Williamson, Chief business economist for IHS Markit’s, this growth indicates the possibility of a rise in interest rates come May, and the Bank of England may spearhead the act.

UK’s service sector surpassed the manufacturing industry as the quickest growing economy in Feb. for the second time following the referendum. Plus, the construction industry was also seen climbing up the ladder in January. In general, the entire economy has gained some momentum in despite the sluggishness in the manufacturing sector.

These PMI surveys collectively suggest that the economy has grown by around 0.4% in 2018’s first quarter, an indication that that businesses have maintained a steady rate of expansion. Moreover, the same surveys also show that UK consumers have been staying cautious. Most times, it is business owners who had the confidence to fulfill orders as buyers were hesitant because of the possible rate increases that would directly affect their household budgets.  

Some of the primary contributing factors that have held up the service sectors are; the higher orders plus increased employment rates. The global economic recovery has also given startups an edge. And one other reason to smile is the fact that the pressure on costs & margins caused by bad exchange rates has lessened over the past few months with merchants keeping an “approach with caution” attitude.

These results from PMI coincide with CBI’s reports. Newton-Smith of CBI reported that some of the driving factors are this excellent result the healthy universal growth which has expanded the market and the accessible merchant account no credit checks.

Author Bio: Electronic payments expert Taylor Cole is a passionate entrepreneur who also enjoys writing, playing guitar and camping. Bestpaymentproviders is UK’s best merchant account no credit checks company serving both traditional and high-risk merchants.