UK service providers recorded solid rises in business activity and incoming new work during August, but rates of growth eased since July and remained notably weaker than seen on average in the first half of 2017. The latest survey also pointed to stronger cost pressures across the service sector, with the rate of input price inflation the fastest since February. Higher staff costs, fuel bills and prices for imported items contributed to another solid increase in average prices charged by service providers in August.

At 53.2 in August, the headline seasonally adjusted IHS Markit/CIPS Services PMI Business Activity Index registered above the 50.0 nochange value for the thirteenth consecutive month. However, the index dropped from 53.8 in July and signalled the slowest pace of business activity expansion since September 2016.