Good news for the Service sector in the latest Purchasing Managers' Index report
The December Purchasing Managers’ Index (PMI) is now out, and the figures are looking good for the end of 2016. This monthly report from Markit and the Chartered Institute of Purchasing and Supply (CIPS) works on a baseline of 50.0 for the Index – and in December, the figures for the service sector were at a 17 month high of 56.2, which is an increase of 1.0 from 55.2 in November.
This indicates that the number of opportunities created in the UK service sector remained at a high during the month – both for contractors and other workers. All of which seems to suggest that the ‘Brexit effect’ is still not being felt, as was originally feared. Hiring of staff amongst UK businesses continues to increase, with the service sector showing a notable and consistent improvement.
According to the report, this positive outcome is a result of many different factors – including an increase in exports, a number of new product launches, some successful mergers and a range of new accounts being secured. The result of all of this is that the overall volume of orders within the sector rose again – for the fourth time over five months, which lead to more roles being created throughout the month of December.
Commenting on these positive figures, Markit’s Chief Business Economist Chris Williamson said, “A buoyant service sector adds to signs that the UK economy continues to defy widely-held expectations of a Brexit-driven slowdown.” – while CIPS Group Chief Executive Officer added, “Keeping up with levels of new work and increased activity, additions to the workforce were maintained for the fifth month running.”
Taking all of this into account, the news certainly looks good for limited company contractors working in the service sector. So if you’ve been thinking about becoming a contractor, and one of your new year resolutions is to improve your work/life balance and to take more control of your own destiny – then this could be the perfect time to make the change. We’re sure you won’t regret it.