Justin Zatouroff, head of business services at KPMG UK comments on the CIPS / Markit services PMI figures that showed a slower rise in service sector activity. He said:
“Despite confidence being dented by the ongoing political uncertainty due to Brexit negotiations and in spite of increasing input price inflation (especially food, imported items and wage growth), the sector saw the highest rate for jobs growth for 14 months.
“Moreover, fierce competition for new work is putting pressure on pricing, which is leading to an ongoing squeeze on margins. The combination of input cost inflation, Brexit and pricing pressures suggests that businesses in the services sector need to keep an eye on the horizon.”
For media enquiries, please contact:
Nahidur Rahman, Senior PR Manager
T: +44 (0) 20 7694 8812
M: +44 (0)73 9376 0775
Follow us on twitter: @kpmguk
KPMG Press Office: +44 (0)207 694 8773
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.