Calendar An icon of a desk calendar. Cancel An icon of a circle with a diagonal line across. Caret An icon of a block arrow pointing to the right. Email An icon of a paper envelope. Facebook An icon of the Facebook "f" mark. Google An icon of the Google "G" mark. Linked In An icon of the Linked In "in" mark. Logout An icon representing logout. Profile An icon that resembles human head and shoulders. Telephone An icon of a traditional telephone receiver. Tick An icon of a tick mark. Is Public An icon of a human eye and eyelashes. Is Not Public An icon of a human eye and eyelashes with a diagonal line through it. Pause Icon A two-lined pause icon for stopping interactions. Quote Mark A opening quote mark. Quote Mark A closing quote mark. Arrow An icon of an arrow. Folder An icon of a paper folder. Breaking An icon of an exclamation mark on a circular background. Camera An icon of a digital camera. Caret An icon of a caret arrow. Clock An icon of a clock face. Close An icon of the an X shape. Close Icon An icon used to represent where to interact to collapse or dismiss a component Comment An icon of a speech bubble. Comments An icon of a speech bubble, denoting user comments. Comments An icon of a speech bubble, denoting user comments. Ellipsis An icon of 3 horizontal dots. Envelope An icon of a paper envelope. Facebook An icon of a facebook f logo. Camera An icon of a digital camera. Home An icon of a house. Instagram An icon of the Instagram logo. LinkedIn An icon of the LinkedIn logo. Magnifying Glass An icon of a magnifying glass. Search Icon A magnifying glass icon that is used to represent the function of searching. Menu An icon of 3 horizontal lines. Hamburger Menu Icon An icon used to represent a collapsed menu. Next An icon of an arrow pointing to the right. Notice An explanation mark centred inside a circle. Previous An icon of an arrow pointing to the left. Rating An icon of a star. Tag An icon of a tag. Twitter An icon of the Twitter logo. Video Camera An icon of a video camera shape. Speech Bubble Icon A icon displaying a speech bubble WhatsApp An icon of the WhatsApp logo. Information An icon of an information logo. Plus A mathematical 'plus' symbol. Duration An icon indicating Time. Success Tick An icon of a green tick. Success Tick Timeout An icon of a greyed out success tick. Loading Spinner An icon of a loading spinner. Facebook Messenger An icon of the facebook messenger app logo. Facebook An icon of a facebook f logo. Facebook Messenger An icon of the Twitter app logo. LinkedIn An icon of the LinkedIn logo. WhatsApp Messenger An icon of the Whatsapp messenger app logo. Email An icon of an mail envelope. Copy link A decentered black square over a white square.

Service sector returns to growth after months of malaise

The UK services sector grew last month, a survey has suggested (Danny Lawson/PA)
The UK services sector grew last month, a survey has suggested (Danny Lawson/PA)

The UK’s service sector broke a three-month losing streak last month, data from an influential survey has suggested.

The S&P Global/CIPS UK services PMI survey showed a reading of 50.9 in November, up from 49.5 in October.

As well as being higher than the month before, the figure was also ahead of the 50.5 that economists had expected, according to a consensus figure supplied by Pantheon Macroeconomics.

Any score above 50 indicates that the sector is growing.

Tim Moore, economics director at S&P Global Market Intelligence, said: “UK service providers moved back into expansion mode during November as stabilising demand conditions helped to lift business activity from its recent malaise.

“Although only marginal, the upturn in service sector output was the fastest since July and slightly stronger than the earlier ‘flash’ estimate for November.”

But service companies are still seeing significant cost rises, largely because of increases in staff wages.

But strong exports to the US and elsewhere helped the sector. These included sales to European customers, despite the frictions that companies said have been caused by Brexit.

Dr John Glen, chief economist at the Chartered Institute of Procurement & Supply (CIPS), said: “Amongst the general malaise in customer confidence impacting on demand, there was the biggest rise in new orders since July and export orders since August.

“A softening in the headline rate of inflation and improved raw material prices set the scene for some clients to commit to new work, while the remainder stayed mostly cautious until there were stronger improvements in the UK economy.”

He added: “There was also an end to the job losses recorded by service businesses every month since September, so this could be another signal that this is the start of a more sustainable revival for 2024.”