Growth of the UK’s private service sector economy was sustained during September, underpinned by sharply rising new business volumes, according to Purchasing Managers’ Index from Market/CIPS.
The seasonally adjusted Business Activity Index, was 58.7 in September. When the index is above 50 it indicates growth, below 50 suggests a fall in the market.
Although the September figure was down on the 60.5 reported in August, it still suggests that growth remains strong.
Companies reported that a combination of rising new business and higher new enquiry levels had supported growth during the latest survey period.
However, capacity remained under pressure, with backlogs of work continuing to increase, and companies were suitably encouraged to add to their payroll numbers.
Confidence in the future also helped to support payroll expansion, with latest data showing business expectations at a three-month high.
David Noble, group chief executive officer at the Chartered Institute of Purchasing & Supply, said: “While not quite hitting the heights of August’s exceptionally high growth rate, services businesses still expanded rapidly in September.
“There are positive signs all around with jumps in confidence levels and new business volumes suggesting the future continues to look rosy for the sector. Many businesses reported that the Scottish independence referendum result has had a positive impact by increasing their confidence in the stability of the business environment.”