Staff and supply shortages have taken their toll on the UK’s economic recovery, according to the latest IHS Markit/CIPS Purchasing Managers’ Index (PMI).
August’s PMI hit a six-month low of 55.3, down from 59.2 in July.
A score above 50 indicates growth, however the post-pandemic recovery appears to be losing momentum due to shortfalls. Companies previously found staffing levels difficult to maintain due to self-isolation requirements for contacts of people with coronavirus (COVID-19). However, self-isolation rules were dropped from 13 August for people who have been fully vaccinated.
Chris Williamson, Economist at IHS Markit, said: ‘Despite COVID-19 containment measures easing to the lowest since the pandemic began, rising virus case numbers are deterring many forms of spending, notably by consumers, and have hit growth via worsening staff and supply shortages.
‘Supplier delays have risen to a degree exceeded only once before – in the initial months of the pandemic – and the number of companies reporting that output had fallen due to staff or materials shortages has risen far above anything ever seen previously in more than 20 years of survey history.’
View our latest blogs
Take a look at our recent blogs below.
Businesses urged to apply for remaining COVID-19 support grants
Businesses are being encouraged to apply for remaining coronavirus (COVID-19) grant funding from local authorities. Hospitality, leisure and accommodation businesses can still apply for one-off cash grants of up to […]
Published on 18th February 2022
Our specialist accounting packages for sole traders and the self-employed combine easy online tools with accountant support to take away the stress of handling your accounts.
From £25 + VAT / month
Thousands of owner-managed businesses turn to Boox for the right help and advice with running their limited company. They love our personal service and accounting market-leading software.
Pay for what you need
A range of cost-effective accounting services designed for buy-to-let landlords and property investors. Specialist advice and marketing leading software takes the complexity and stress out of managing a property investment business.
From £40 + VAT / month