UK service providers recorded an increase in business activity
for the fifth month running during July, but the rate of growth
was the weakest since March. Staff shortages and supply
issues were a severe constraint on business capacity, which
led to another strong rise in backlogs of work.
Tight labour market conditions led to greater wage pressures
across the service economy and this contributed to the fastest
increase in overall input costs since the survey began in July
1996. Prices charged by service sector companies also rose at
a survey-record pace.
At 59.6 in July, the headline seasonally adjusted IHS Markit/
CIPS UK Services PMI® Business Activity Index
And of course there’s no sign of inflation at all.