Experts suggest that the best of the post-pandemic recovery may be over, especially if higher entertainment costs dampen consumer spending
The UK economy has continued to recover but is now losing some of its previous momentum amid some inflationary pressures, new figures show.
The growth of UK service companies, which make up the lion’s share of UK economic output, has slowed to its lowest level since March but is still strong, according to an influential survey.
The sector achieved a strong 59.6 im in July IHS Markit / CIPS UK Services PMI reportwho interviewed business leaders across the country.
It was lower than June’s 62.4, but better than economists predicted, who predicted a value of 57.8.
Any value over 50 is considered growth in the industry.
That comes after the British bakery chain Greggs has announced that it will create 500 new jobs in the coming months as it continues to open new branches in the nation. These new positions are part of the bakery chain’s plans to open around 100 new Greggs stores by the end of 2021.
Tim Moore, Director of Economics at IHS Markit, said: “More and more companies are suffering from growth restraints due to shortages of labor and materials, while on the demand side we are already experiencing the peak of pent-up consumer spending.”
Issues were also hit by people who were “pinged” from the NHS app and forced to stay at home after being in close contact with someone who later tested positive COVID-19the survey found.
The costs have also skyrocketed for many companies.
Construction trader earlier this week Travis Perkins said his bill for raw materials and other items rose 7% in the past three months.
That SMEs Survey found that wages rose, fuel prices rose, and transportation bills rose as well.
Inflation hasn’t been this high since the monthly studies began a quarter of a century ago.
As a result, the companies surveyed increased their services more quickly than in 25 years.
This comes according to the number of The drug-related deaths recorded in both England and Wales in 2020 were the highest on record in 1993. A total of 4,561 drug poisoning-related deaths were recorded, representing a rate of 79.5 per million population.
Duncan Brock, group leader a the Chartered Institute of Procurement & Supply, said, “We suspect that the best of the post-pandemic recovery may be behind us, especially as higher recreational and entertainment costs reduce the appetite for consumer spending.”
The survey also found that UK Composite Output Index fell from 62.2 in June to 59.2 in July, its lowest level in four months.
This key figure is a weighted average of the service and manufacturing industries.