Results of the Markit services PMI
- Best reading since survey began in 2009
- Prelim was 63.1
- 63.1 was expected
- Composite PMI 63.5 vs 62.2 prelim
- Input costs rose at the quickest rate since data collection began in October 2009
- Firms passed on higher prices to their customers through the fastest rise in charges on record
- New business rose at record base
This is a good sign on the services sector, you don't often see this survey revised that much higher from the prelim. It bodes well for ISM at the top of the hour.
Commenting on the latest survey results, Chris Williamson, Chief Business Economist at IHS Markit, said:
"Thanks to the cocktail of a successful vaccine roll-out, the reopening of the economy, ultra-accommodative monetary policy and injection of fresh fiscal stimulus, businesses are reporting the strongest surge in demand seen for at least a decade.
"The upswing in demand has led to one of the strongest months of job creation yet recorded by the survey as business prepares for better times ahead.
"The biggest threat to the outlook remains new virus variants, which will inevitably mean international travel and associated business activity will stay under pressure for some time to come, but in the meantime the domestic economy is faring very well, especially consumer facing industries.
"Another concern is prices, with a record increase in service sector charges highlighting how inflationary pressures are by no means confined to the manufacturing sector. Indicators of price pressures and capacity constraints will need to be monitored closely to assess whether such price rises are transitory.
