Commenting on the Markit/CIPS UK Services PMI, Justin Zatouroff, head of business services, KPMG UK said:
“The services sector rebounded in March to post the highest growth seen in a quarter, driven by those in the financial services sector. However, whilst these firms made strong gains, businesses reliant on consumer spending saw activity fall back, impacted in part by cash strapped consumers cutting back on discretionary spending. This impacted the overall performance of the sector.
“Underlying inflation continues to accelerate and drive up prices for services, and these increases are being passed on to customers. The combination of input cost inflation and falling consumer confidence suggests that businesses in the services sector need to keep an eye on the horizon.”
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Notes to Editors:
KPMG LLP, a UK limited liability partnership, operates from 22 offices across the UK with approximately 13,500 partners and staff. The UK firm recorded a revenue of £2.07 billion in the year ended 30 September 2016. KPMG is a global network of professional firms providing Audit, Tax, and Advisory services. It operates in 152 countries and has 189,000 professionals working in member firms around the world. The independent member firms of the KPMG network are affiliated with KPMG International Cooperative ("KPMG International"), a Swiss entity. Each KPMG firm is a legally distinct and separate entity and describes itself as such.