Latest data released by Markit/CIPS - 3 December 2021
- Composite PMI 57.6 vs 57.7 prelim
The preliminary report can be found here. New business hits a five-month high but the key standout in the report is surging price pressures as the data highlighted another round of rapid cost inflation, driven by higher fuel prices, wages and utility bills.
Of note, prices charged by service providers also increased at the fastest rate since the survey began in July 1996. Markit notes that:
"Surging price pressures have done little to dent business and consumer spending across the UK economy, according to the latest PMI data. New order growth hit a five-month high in November, job creation remained strong, and backlogs of work built up due to supply issues.
"The overall speed of recovery looks to have accelerated in comparison to the third quarter of 2021, with output growth mostly driven by services as manufacturers struggle with severe shortages of raw materials and critical components.
"The vast majority of survey responses in November were received prior to the news of the Omicron variant, however, which has the potential to derail near-term growth prospects and add to international supply chain disruption.
"Hospitality has been a top-performing area of the UK economy in recent months and looser international travel restrictions delivered a considerable boost to export sales in November. Worryingly, the fastest-growing parts of the service sector are also the most exposed to the return of tighter pandemic restrictions, especially as we approach the crucial festive spending period."
