The UK’s service sector is in good health after a report revealed that it witnessed an upturn during the January period.
The report, by the Chartered Institute of Purchasing and Supply (CIPS), shows that growth in services even outperformed that of December, traditionally the most profitable for the sector.
Increased activity was underpinned by a further rise in private contracts, with new business increasing for the twenty-first successive month.
CIPS credit increasing levels of promotional and marketing campaigns for the overall increase in business activity.
Prices for services also increased during the period, a possible consequence of increases to the minimum wage last year, as well as the rising price of raw materials - though the growing strength of sterling against the dollar ensured minimum growth.
Roy Ayliffe, director of professional practice at CIPS, said: “Growth was underpinned by an upturn in new orders, which was partly by clients’ increased willingness to commit new business spend.”
As a result, confidence in the sector is riding high, with three fifths of respondents anticipating a rise in activity during the next twelve months, compared to just 5 per cent expecting a measure of decline.
Ayliffe said, “Overall, the future outlook for the service sector was extremely positive, with levels of optimism reaching the highest for seven months.”
