Waiter, London

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Chris Ratcliffe

The UK service sector “moved up a gear” in October based on a carefully watched survey of buying managers.

The Markit/CIPS providers buying managers’ index (PMI) rose to 54.5 final month, from 52.6 in September – the best degree since January.

Nonetheless the weaker pound is making life costlier for corporations, with their inflation prices working on the highest fee since March 2011.

Employment within the sector rose for the third month working, the survey confirmed.

“The dominant UK service sector moved up a gear in the beginning of the ultimate quarter of 2016,” the report mentioned.

Chris Williamson, the chief enterprise economist at IHS Markit mentioned: “An encouraging image of the economic system gaining additional development momentum in October is marred by information that inflationary pressures are rising quickly.

“The rise in costs threatens to curb each company hiring and client spending, as corporations search to scale back employees prices and households see their pay eroded by rising inflation,” he mentioned.

The survey indicated that new contracts rose on the quickest fee in 9 months, with the weaker pound serving to generate new enterprise alternatives.