United Kingdom Services PMI2007-2021 Data | 2022-2023 Forecast | Calendar

The IHS Markit/CIPS UK Services PMI jumped to 49.7 in February 2021, up from 39.5 in the previous month and well above market expectations of 41.0, a preliminary estimate showed. The latest reading signaled the softest rate of decline since the current phase of contraction began in last November, as the country remains under lockdown. New order volumes and employment numbers decreased only marginally, while business optimism improved to the strongest level since September 2009. The rates of contraction of the hospitality sector, including hotels and restaurants, and of the transport and travel sector eased considerably; while business and financial services companies meanwhile recovered to register modest expansions.

The IHS Markit/CIPS UK Services PMI was revised higher to 39.5 in January of 2021 from a preliminary of 38.8 and compared to 49.4 in December. Still, the reading pointed to the sharpest contraction in the services sector since May of 2020 due to the impact of restrictions on trade and temporary business closures during the third national lockdown. Despite a sharp downturn in client demand due to the pandemic, business optimism improved for the third consecutive month and was the strongest since May of 2014, amid successful UK vaccine rollout so far in 2021 and hopes of a strong rebound in economic conditions as the pandemic situation improves.

The IHS Markit/CIPS UK Services PMI slumped to 38.8 in January 2021 from 49.4 in the previous month, well below market consensus of 45, a preliminary estimate showed. The latest reading pointed to a third successive month of contraction in the service sector and the steepest deterioration since May 2020. Lower levels of activity reflected cutbacks to both business and consumer spending at the start of 2021. Outside of the leisure, travel and hospitality sectors, survey respondents often noted that they had avoided temporary business closures during the third national lockdown, but client demand had softened considerably and new projects were delayed as a result. Hopes of a rebound in the second half of 2021 were signaled by a further rise in the business expectations index during January. The degree of positive sentiment reached its highest since April 2014.

The IHS Markit/CIPS UK Services PMI was revised lower to 49.4 in December 2020, from a preliminary estimate of 49.9 and compared with November's five-month low. Moreover, the downturn in service sector output recorded on average in the final quarter of 2020 (49.5) contrasted with a solid pace of recovery during the third quarter (57.1). Overall activity contracted in December, amid shrinking client demand and restrictions on trade due to the COVID-19 pandemic. In addition, total new business declined for a third consecutive month, with export sales decreasing sharply due to severe restrictions on international travel and heightened Brexit uncertainty. Staffing levels moved closer to stabilization, with the rate of job shedding the slowest since the downturn began in March 2020. On the price front, input cost inflation hit a ten-month high, while output charges decreased for the fourth month running. Looking ahead, business sentiment rose to the highest since March 2015.