Growth of service sector heads for all time high

The Index grew from 57.7 to 59.1 over the course of June and July, which shows a steady progression toward last year’s all-time: 62. 

This shows renewed vigour in the service industries, with new contracts being drawn and increasing confidence, according to the report.

This has impacted employment: with steadily rising recruitment and solid increases employee payment – payroll has actually been increasing solidly since June.

Chris Williamson, the chief economist for Markit, believes these trends are a cause for optimism in the service secotr. He says: “The vast services economy’s growth shows no sign of abating. The July PMI showed the sector expanding at the fastest rate since last November, as demand for services continued to increase at a rate rarely seen in the survey’s 18-year history.”

This comes as welcome news, after the news the manufacturing sector has not experienced similar growth rises, and after initial recovery from a steep growth dip last November looked uncertain, and even with the potential to fall further. 

However, these figures encourage the view that growth in the service sector will continue to rise – hopefully – to the highest it has ever been.

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