Services sector job creation speeds up

The rate of job creation in the services sector quickened to its fastest pace in nearly eight years last month, with optimism among companies reaching its highest levels for more than 10 years, according to a new survey.

The latest monthly purchasing managers’ index (PMI) for the services sector, published yesterday by specialist bank, Investec, showed overall activity growth in the sector continued for the 19th consecutive month in February; even though the index showed a moderate decline, from January, from 61.5 points to 57.5 points. Any reading over the neutral 50 point mark represents a sector in growth mode.

February’s PMI shows confidence levels among respondent firms to be at the highest level since 2004, the rate of job creation at its strongest since October 2006 (driven by firms in the technology/ media/ telecoms and business services sectors) and another sharp rise in new business orders. Although slowing, the rate of expansion in new export orders also remained buoyant.