The
The latest
A reading above 50 indicates an expansion in business activity.
Despite the robust performance, the figures suggest concerns that intense inflation pressures may be flowing into parts of the
Read more: British savings jump during lockdown as
The rise in operating expenses among service sector firms was the steepest since the survey began 25 years ago.
Companies attributed these higher operating costs to having to increase staff wages, higher raw material prices and greater transportation charges.
“Record rates of input cost and prices charged inflation across the service sector, reflecting higher commodity prices, transport shortages and staff wages. Imbalanced supply and demand was the main driver, while the roll-back of pandemic discounting by some service providers amplified the latest round of price hikes.”
Rampant demand put services firms under severe strain to increase supply to cope with strong consumer spending. June’s surge in backlogs of work was the steepest since the survey began in
Further gains in new orders triggered a rise in output volumes in June, although new business growth edged down slightly from May.
Recruitment activity climbed sharply as firms rushed to scale staffing levels to cope with surging demand. Job creation was the strongest since
“Backlogs of work increased at a faster pace than any other time since the survey began in
“Staff shortages and delays among suppliers were by far the most commonly cited constraints on growth in June. International travel restrictions, especially uncertainty about quarantine polices at home and abroad, were also a prominent source of anxiety. These disruptions to inbound and outbound travel contributed to another slight dip in export sales.”
“Firms reported very strong growth in orders, which came exclusively from the domestic market, and a rapid pace of job creation.”
Read more: Haldane: Inflation will reach four per cent this year
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© City AM, source