UK services PMI drops to 50.1 in January, a big miss

The UK services sector witnessed a renewed loss of momentum in the business activity at the start of 2019, the latest survey report from Markit Economics showed this Tuesday.

The headline seasonally adjusted IHS Markit/CIPS UK Services PMI Business Activity Index fell to 50.1 in January, down from 51.2 in the previous month and worse than consensus estimates pointing to a reading of 51.0.

Key Points:

   •  Business activity stagnates amid a modest drop in new work.
   •  Staffing levels decline for the first time since December 2012.
   •  Strong input cost inflation persists at the start of 2019.