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.”
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