(IHS Markit) The UK seasonally adjusted service PMI was 59.6 in July, a drop from 62.4 reported in June due to staff shortages and supply chain constraints.
The UK seasonally adjusted Composite Output Index was 59.2, down from 62.2 reported in June, the slowest private sector expansion in four months.
The rate of unemployment dropped to a three-month low as demand for staff remained high.
Backlog of work increased for the fifth consecutive month with the sector attributing this to the Covid-19 isolation rules.
The inflation rate reported was the sharpest ever recorded in 25 years as a result of rising input costs and increasing demand.
The price-driven inflation peaked at a record high in July attributable to supply shortages in service and manufacturing sectors, which also increased work backlogs.
There is a positive business outlook among service companies, with 57% predicting an expansion while 9% foresee a contraction.
FTSE 100 is up 0.4%, GBPUSD is up +0.15%.
