Confidence among UK services sector firms at highest level in 15 years as bosses eye end of lockdowns
Confidence among firms in Britain’s services sector has risen to its highest level for nearly 15 years as bosses eye the end of the Covid lockdown.
In its latest health check on the economy, IHS Markit said: ‘Business expectations for the next 12 months improved in February, with vaccine rollouts and hopes of a sustained economic recovery leading to the highest level of confidence since December 2006.’
The report suggested that the services sector ‘stabilised’ in February following a sharp contraction in January.
Vaccine hopes: A report from IHS Markit suggested that Britain’s services sector ‘stabilised’ in February following a sharp contraction in January
The so-called purchasing managers index – where scores below 50 show decline – rose from an eight-month low of 39.5 in January to 49.5 in February.
The report noted that restrictions on travel, leisure and hospitality due to the national lockdown continued to curtail overall activity, but there were some pockets of growth in technology and business services.
Hopes are rising that the lifting of lockdown restrictions over the coming months will kick-start the economy.
Duncan Brock, group director at the Chartered Institute of Procurement & Supply, which published the report with IHS Markit, said: ‘The dominant services sector bounced back in February.’