Services activity grew in September – figures

ACTIVITY in the services sector grew in September but at a slower rate than the previous month, according to new figures.

The purchasing managers’ index stayed above the 50 mark, indicating increased activity, for the 21st consecutive month.

However, it fell from 53.7 to 52.2 with anecdotal evidence suggesting an underlying improvement in demand and a post-Olympics boost to business activity.

Companies were also able to manage their workloads with fewer staff leading to a net fall in employment for the first time in ten months.

David Noble, chief executive at the Chartered Institute of Purchasing & Supply, said: “Activity in the services sector continues to occupy positive territory, though growth levels remain below trend, signifying that there is still fragility. However, the sector has been bolstered by robust new business volumes, demonstrating that there is more traction in the sector.

“These figures therefore augur well as we round off the third quarter. With no Bank Holidays until Christmas and the Olympics finished, we now have a three month clear run, without disruptions, to try and get a sense of where the sector – and the economy – really is.”