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Services PMI points to wage bills increasing operating expenses

UK DATA
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Looking at the press release for the UK services PMI, there was a slowdown in activity with some companies holding off due to election uncertainty. The language around pricing / employment was interesting:

  • "In some cases, firms made redundancies and opted to not replace voluntary leavers to cut costs."
  • "Operating expenses continued to rise at a sharp pace across the UK service sector, with wage bills noted as a key source of inflation. Survey respondents also mentioned higher shipping costs and greater raw material prices. Nevertheless, the overall extent to which input costs rose was the slowest since February 2021."
  • "Prices charged increased at a slightly stronger rate during June, however. The rate of inflation accelerated slightly from May's 37-month low."
  • However the language on prices and costs was a bit less explicit than in the flash release that had said: "The uptick in services charge inflation was the first recorded since February, with firms generally highlighting the need to cover their costs via increased selling prices."
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Looking at the press release for the UK services PMI, there was a slowdown in activity with some companies holding off due to election uncertainty. The language around pricing / employment was interesting:

  • "In some cases, firms made redundancies and opted to not replace voluntary leavers to cut costs."
  • "Operating expenses continued to rise at a sharp pace across the UK service sector, with wage bills noted as a key source of inflation. Survey respondents also mentioned higher shipping costs and greater raw material prices. Nevertheless, the overall extent to which input costs rose was the slowest since February 2021."
  • "Prices charged increased at a slightly stronger rate during June, however. The rate of inflation accelerated slightly from May's 37-month low."
  • However the language on prices and costs was a bit less explicit than in the flash release that had said: "The uptick in services charge inflation was the first recorded since February, with firms generally highlighting the need to cover their costs via increased selling prices."