Last month saw the UK services sector grow at a historic rate, thanks in no small part to a sharp upturn in consumer confidence.
The Markit/CIPS services Purchasing Manager’s Index (PMI) well exceeded the “no change” mark of 50.0 in July, reaching an impressive high of 59.1, up from 57.7 in June. It marked an eight-month high for UK services, and this positive trend looks set to continue.
Contractors in the construction sector were also given cause to rejoice when figures released on Monday suggested the PMI for UK construction was 62.4, which was above expectations. It was reported that house building growth was at its fastest rate in 11 years, in accordance with the government’s new housing initiatives. Clearly, there’s plenty of optimism coursing through the UK economy at the moment.
On the Rise
Currently, the services sector accounts for more than 70 per cent of the UK economy, a figure that has made it the driving force in the recovery from the recession. The fiscal updraft stirring within the sector is good news for everyone, especially for British companies looking to bid for contract work.
Last October marked a multi-year high for the service sector’s PMI, reaching a staggering 62.5. It was generally accredited to be the fastest economic growth since 1997, marking it as the highest services PMI in 15 years.
The improvement over June and July looks to continue into the fourth quarter, nearing the economic heights of late 2013.
In the Money
Markit’s chief economist Chris Williamson noted that July’s momentous PMI rise was the result of a demand for services continuing to increase “at a rate rarely seen in the survey’s 18-year history”.
On a wider scale, the UK economy has grown by 0.8 per cent in the first half of 2014, set to continue throughout the rest of the year. However, Mr Williamson added that the strong performance of the services and construction sectors offset a slightly disappointing period for the manufacturing industry, so it’s important that we don’t get carried away just yet, as there’s clearly plenty of room for improvement.
A Busy Time for Thornton & Lowe’s Bid Writing Consultants
With services going from strength to strength, we at Thornton & Lowe are excited to see the numerous opportunities that will come through for contractors over the coming year.
The pace at which the industry is growing is a testament to how integral services are to UK businesses, and is sure to open up thousands of new contracts across Britain due to heightening demand. That means that smaller companies will have far more opportunities to break new ground, especially coinciding with the new EU procurement laws promoting availability for tenders.
With so many firms looking for expert bid support, the Thornton & Lowe team are likely to be extremely busy throughout the rest of 2014.
Onwards and upwards!